Question 1

The temporary sale of a commodity at below cost or at a lower price abroad in order to drive foreign producers out of business is called:

Accepted Answer

A) predatory dumping 
B) sporadic dumping 
C) continuous dumping 
D) voluntary export restraints 
A) predatory dumping 
B) sporadic dumping 
C) continuous dumping 
D) voluntary export restraints A

Question 2

On which of the following principles does GATT rest?

Accepted Answer

A) nondiscrimination 
B) elimination of nontariff barriers 
C) consultation among nations in solving trade disputes 
D) all of the above 
A) nondiscrimination 
B) elimination of nontariff barriers 
C) consultation among nations in solving trade disputes 
D) all of the above D

Question 3

A fallacious argument for protection is:

Accepted Answer

A) the infant industry argument 
B) protection for national defense 
C) the scientific tariff 
D) to correct domestic distortions 
A) the infant industry argument 
B) protection for national defense 
C) the scientific tariff 
D) to correct domestic distortions C

Question 4

Which of the following was not negotiated under the Uruguay Round?

Accepted Answer

A) reduction of tariffs on industrial goods 
B) replacement of quotas with tariffs 
C) reduction of subsidies on industrial products and on agricultural exports 
D) liberalization in trade in most services 
A) reduction of tariffs on industrial goods 
B) replacement of quotas with tariffs 
C) reduction of subsidies on industrial products and on agricultural exports 
D) liberalization in trade in most services

Question 5

Trade protection in the United States is usually provided to:

Accepted Answer

A) low-wage workers 
B) well-organized industries with large employment 
C) industries producing consumer products 
D) all of the above 
A) low-wage workers 
B) well-organized industries with large employment 
C) industries producing consumer products 
D) all of the above

Question 6

An international cartel refers to:

Accepted Answer

A) dumping 
B) an organization of exporters 
C) an international commodity agreement 
D) voluntary export restraints 
A) dumping 
B) an organization of exporters 
C) an international commodity agreement 
D) voluntary export restraints

Question 7

Which of the following is true with respect to the infant-industry argument for protection:

Accepted Answer

A) it refers to temporary protection to establish a domestic industry 
B) to be valid,the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during
The infancy period 
C) is inferior to an equivalent production subsidy to the infant industry 
D) all of the above 
A) it refers to temporary protection to establish a domestic industry 
B) to be valid,the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during
The infancy period 
C) is inferior to an equivalent production subsidy to the infant industry 
D) all of the above

Question 8

Adjustment to any shift in the domestic demand or supply of an importable commodity occurs:

Accepted Answer

A) in domestic price with an import quota 
B) in the quantity of imports with a tariff 
C) through the market mechanism with an import tariff but not with an import quota 
D) all of the above 
A) in domestic price with an import quota 
B) in the quantity of imports with a tariff 
C) through the market mechanism with an import tariff but not with an import quota 
D) all of the above

Question 9

Which of the following is false with respect to strategic trade policy?

Accepted Answer

A) it postulates that a nation can gain by an activist trade policy 
B) it is practiced to some extent by most industrial nations 
C) it can easily be carried out 
D) all of the above 
A) it postulates that a nation can gain by an activist trade policy 
B) it is practiced to some extent by most industrial nations 
C) it can easily be carried out 
D) all of the above

Question 10

The most-favored-nation principle refers to:

Accepted Answer

A) extension to all trade partners of any reciprocal tariff reduction negotiated by the U.S.with any of its trade partners 
B) multilateral trade negotiation 
C) the General Agreement on Tariffs and Trade 
D) the International Trade Organization 
A) extension to all trade partners of any reciprocal tariff reduction negotiated by the U.S.with any of its trade partners 
B) multilateral trade negotiation 
C) the General Agreement on Tariffs and Trade 
D) the International Trade Organization

Question 11

An increase in the demand of the imported commodity subject to a given import quota:

Accepted Answer

A) reduces the domestic quantity demanded of the commodity 
B) increases the domestic production of the commodity 
C) reduces the domestic price of the commodity 
D) reduces the producers' surplus 
A) reduces the domestic quantity demanded of the commodity 
B) increases the domestic production of the commodity 
C) reduces the domestic price of the commodity 
D) reduces the producers' surplus

Question 12

The type of dumping which would justify antidumping measures by the country subject to the dumping is:

Accepted Answer

A) predatory dumping 
B) sporadic dumping 
C) continuous dumping 
D) all of the above 
A) predatory dumping 
B) sporadic dumping 
C) continuous dumping 
D) all of the above

Question 13

Industrial policy refers to:

Accepted Answer

A) an activist policy by the government of an industrial country to stimulate the development of an industry 
B) the granting of a subsidy to a domestic industry to stimulate the development of an industry 
C) the granting of a subsidy to a domestic industry to counter a foreign subsidy 
D) all of the above 
A) an activist policy by the government of an industrial country to stimulate the development of an industry 
B) the granting of a subsidy to a domestic industry to stimulate the development of an industry 
C) the granting of a subsidy to a domestic industry to counter a foreign subsidy 
D) all of the above

Question 14

Game theory refers to:

Accepted Answer

A) a method of choosing the optimal strategy in conflict situations 
B) the granting of a subsidy to correct a domestic distortion 
C) the theory of tariff protection 
D) none of the above 
A) a method of choosing the optimal strategy in conflict situations 
B) the granting of a subsidy to correct a domestic distortion 
C) the theory of tariff protection 
D) none of the above

Question 15

An import quota:

Accepted Answer

A) increases the domestic price of the imported commodity 
B) reduces domestic consumption 
C) increases domestic production 
D) all of the above 
A) increases the domestic price of the imported commodity 
B) reduces domestic consumption 
C) increases domestic production 
D) all of the above

The temporary sale of a commodity at below cost or at a lower price abroad in order to drive foreign producers out of business is called:

On which of the following principles does GATT rest?

A fallacious argument for protection is:

Which of the following was not negotiated under the Uruguay Round?

Trade protection in the United States is usually provided to:

An international cartel refers to:

Which of the following is true with respect to the infant-industry argument for protection:

Adjustment to any shift in the domestic demand or supply of an importable commodity occurs:

Which of the following is false with respect to strategic trade policy?

The most-favored-nation principle refers to:

An increase in the demand of the imported commodity subject to a given import quota:

The type of dumping which would justify antidumping measures by the country subject to the dumping is:

Industrial policy refers to:

Game theory refers to:

An import quota:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters

Exam 9: Nontariff Trade Barriers and the New Protectionism

The temporary sale of a commodity at below cost or at a lower price abroad in order to drive foreign producers out of business is called:

On which of the following principles does GATT rest?

A fallacious argument for protection is:

Which of the following was not negotiated under the Uruguay Round?

Trade protection in the United States is usually provided to:

An international cartel refers to:

Which of the following is true with respect to the infant-industry argument for protection:

Adjustment to any shift in the domestic demand or supply of an importable commodity occurs:

Which of the following is false with respect to strategic trade policy?

The most-favored-nation principle refers to:

An increase in the demand of the imported commodity subject to a given import quota:

The type of dumping which would justify antidumping measures by the country subject to the dumping is:

Industrial policy refers to:

Game theory refers to:

An import quota:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters