Chapter 01 International Economics Is Different Multiple Choice Questions 1. Suppose imports of automobiles from Japan to country X has increased by 10 percent this year, while total sales of automobiles in country X were the same as last year. Which of the following is an impact of increased imports on country X? A. The market share of the domestic automobile manufacturing firms declines. B. The price of automobiles, in general, increases in country X's market. C. The demand for inputs into producing automobile in country X is unchanged from last year. D. Employment in country X's automobile industry increases. 2. Between 2004 and 2008, the U.S. tire production declined and imports increased. Which of the following is likely to be an immediate effect of this situation? A. The demand for tires declined substantially in the U.S. market. B. The U.S. workers in the existing tire manufacturing units demanded wage hikes. C. The trade surplus of the United States increased. D. Some workers in the U.S. tire industry lost their jobs.