Question 1

A _____ tariff is a single tariff for all imports.

Accepted Answer

A)  revenue 
B)  specific 
C)  protective 
D)  ad valorem 
E)  uniform 
A)  revenue 
B)  specific 
C)  protective 
D)  ad valorem 
E)  uniform

Question 2

Explain why ISI was doomed to fail. Be sure to include the notions of comparative advantage and factors of production.

Accepted Answer

The Import Substitution Industrializatio

Question 3

By importing something which is cheaper internationally than domestically, consumer welfare ____, and producer welfare ____.

Accepted Answer

A)  increases, decreases 
B)  increases, increases 
C)  decreases, increases 
D)  decreases, decreases 
E)  both are unaffected 
A)  increases, decreases 
B)  increases, increases 
C)  decreases, increases 
D)  decreases, decreases 
E)  both are unaffected

Question 4

In which decade did countries in the region begin to join GATT/WTO?

Accepted Answer

A)  1950s 
B)  1960s 
C)  1970s 
D)  1980s 
E)  1990s 
A)  1950s 
B)  1960s 
C)  1970s 
D)  1980s 
E)  1990s

Question 5

Describe the factor-proportions model of international trade. Relate this to the development of industry in Latin America under ISI.

Accepted Answer

The factor-proportions model of internat

Question 6

If Brazil is a labor abundant country, then international trade would tend to:

Accepted Answer

A)  make Brazil poorer. 
B)  increase the welfare of the owners of capital in Brazil. 
C)  decrease the welfare of labor in Brazil. 
D)  all of the above 
E)  none of the above 
A)  make Brazil poorer. 
B)  increase the welfare of the owners of capital in Brazil. 
C)  decrease the welfare of labor in Brazil. 
D)  all of the above 
E)  none of the above

Question 7

Which of the following was related to the reluctance of the countries of Latin America to join the GATT/WTO?

Accepted Answer

A)  specific tariffs 
B)  ad valorem tariffs 
C)  RTAs 
D)  quotas 
E)  none of the above 
A)  specific tariffs 
B)  ad valorem tariffs 
C)  RTAs 
D)  quotas 
E)  none of the above

Question 8

Prior to 1930, tariffs in Latin America were mainly:

Accepted Answer

A)  ad valorem. 
B)  unified. 
C)  revenue. 
D)  infrequent. 
E)  low 
A)  ad valorem. 
B)  unified. 
C)  revenue. 
D)  infrequent. 
E)  low

Question 9

The effective rate of protection is related to:

Accepted Answer

A)  the tariff on the final product. 
B)  the tariff on components. 
C)  the percentage of the final product that is imported components. 
D)  all of the above 
E)  none of the above 
A)  the tariff on the final product. 
B)  the tariff on components. 
C)  the percentage of the final product that is imported components. 
D)  all of the above 
E)  none of the above

Question 10

The phrase that expresses the idea that countries have different tariffs on different products is known as:

Accepted Answer

A)  collateral protection. 
B)  the structure of protection. 
C)  price discrimination. 
D)  tariff equivalence. 
E)  none of the above 
A)  collateral protection. 
B)  the structure of protection. 
C)  price discrimination. 
D)  tariff equivalence. 
E)  none of the above

Question 11

MERCOSUR is a:

Accepted Answer

A)  preferential trade agreement. 
B)  a FTA. 
C)  a customs union. 
D)  a common market. 
E)  an economic union. 
A)  preferential trade agreement. 
B)  a FTA. 
C)  a customs union. 
D)  a common market. 
E)  an economic union.

Question 12

Show how tariffs and quotas would tend to lead to losses in welfare for any society and tend to misallocate resources. What effect did these barriers tend to have on economic growth in Latin America?

Accepted Answer

Tariffs and quotas tend to lead to losse

Question 13

What does the Heckscher-Ohlin model attempt to explain?

Accepted Answer

A)  comparative advantage based on endowment of the factors of production 
B)  the benefits of trade due to comparative advantage 
C)  the long-term effects of mercantilism 
D)  the effect of tariffs on international trade 
E)  the benefits of RTAs 
A)  comparative advantage based on endowment of the factors of production 
B)  the benefits of trade due to comparative advantage 
C)  the long-term effects of mercantilism 
D)  the effect of tariffs on international trade 
E)  the benefits of RTAs

Question 14

As of 2013, Latin America has a capital-to-labor ratio akin to what income category of nation?

Accepted Answer

A)  low income 
B)  middle income 
C)  high income 
D)  developed 
E)  impoverished 
A)  low income 
B)  middle income 
C)  high income 
D)  developed 
E)  impoverished

Question 15

Latin American economies tend to be labor _____, and capital _____.

Accepted Answer

A)  abundant, abundant 
B)  scarce, scarce 
C)  abundant, scare 
D)  scare, abundant 
E)  intensive, intensive 
A)  abundant, abundant 
B)  scarce, scarce 
C)  abundant, scare 
D)  scare, abundant 
E)  intensive, intensive

Question 16

Which country in Latin America has signed the most FTAs?

Accepted Answer

A)  Mexico 
B)  Chile 
C)  Panama 
D)  Colombia 
E)  Paraguay 
A)  Mexico 
B)  Chile 
C)  Panama 
D)  Colombia 
E)  Paraguay

Question 17

An efficiency loss that results from a RTA because less efficient member countries displace more efficient nonmember countries is known as:

Accepted Answer

A)  trade creation 
B)  trade diversion 
C)  opportunity cost 
D)  effective rate of protection 
E)  factor-price equalization 
A)  trade creation 
B)  trade diversion 
C)  opportunity cost 
D)  effective rate of protection 
E)  factor-price equalization

Question 18

Suppose that Latin America's trade with the rest of the world was free of trade barriers and the labor markets of the region were flexible. Describe what would happen to the price of labor and the distribution of income.

Accepted Answer

If Latin America's trade with the rest o

Question 19

If a nation X can produce both machines and commodities more efficiently than nation Y, then nation X is said to have a(n) ______ over nation Y.

Accepted Answer

A)  comparative advantage 
B)  comparative disadvantage 
C)  opportunity cost 
D)  absolute advantage 
E)  absolute disadvantage 
A)  comparative advantage 
B)  comparative disadvantage 
C)  opportunity cost 
D)  absolute advantage 
E)  absolute disadvantage

Question 20

Suppose that Latin America is labor abundant, and the rest world is capital abundant. There are two goods, commodities and machines that are labor intensive and capital intensive, respectively. Explain the pattern of trade between Latin America and the rest of the world. How would this affect the welfare of labor in Latin America?

Accepted Answer

In this scenario, Latin America, being l

A _____ tariff is a single tariff for all imports.

Explain why ISI was doomed to fail. Be sure to include the notions of comparative advantage and factors of production.

By importing something which is cheaper internationally than domestically, consumer welfare , and producer welfare .

In which decade did countries in the region begin to join GATT/WTO?

Describe the factor-proportions model of international trade. Relate this to the development of industry in Latin America under ISI.

If Brazil is a labor abundant country, then international trade would tend to:

Which of the following was related to the reluctance of the countries of Latin America to join the GATT/WTO?

Prior to 1930, tariffs in Latin America were mainly:

The effective rate of protection is related to:

The phrase that expresses the idea that countries have different tariffs on different products is known as:

MERCOSUR is a:

Show how tariffs and quotas would tend to lead to losses in welfare for any society and tend to misallocate resources. What effect did these barriers tend to have on economic growth in Latin America?

What does the Heckscher-Ohlin model attempt to explain?

As of 2013, Latin America has a capital-to-labor ratio akin to what income category of nation?

Latin American economies tend to be labor _, and capital _.

Which country in Latin America has signed the most FTAs?

An efficiency loss that results from a RTA because less efficient member countries displace more efficient nonmember countries is known as:

Suppose that Latin America's trade with the rest of the world was free of trade barriers and the labor markets of the region were flexible. Describe what would happen to the price of labor and the distribution of income.

If a nation X can produce both machines and commodities more efficiently than nation Y, then nation X is said to have a(n) ______ over nation Y.

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Macroeconomic Stability

Poverty Inequality

Economic Policy Debates in Latin America

Filters

Exam 7: Latin American Trade Policy

A _____ tariff is a single tariff for all imports.

Explain why ISI was doomed to fail. Be sure to include the notions of comparative advantage and factors of production.

By importing something which is cheaper internationally than domestically, consumer welfare ____, and producer welfare ____.

In which decade did countries in the region begin to join GATT/WTO?

Describe the factor-proportions model of international trade. Relate this to the development of industry in Latin America under ISI.

If Brazil is a labor abundant country, then international trade would tend to:

Which of the following was related to the reluctance of the countries of Latin America to join the GATT/WTO?

Prior to 1930, tariffs in Latin America were mainly:

The effective rate of protection is related to:

The phrase that expresses the idea that countries have different tariffs on different products is known as:

MERCOSUR is a:

Show how tariffs and quotas would tend to lead to losses in welfare for any society and tend to misallocate resources. What effect did these barriers tend to have on economic growth in Latin America?

What does the Heckscher-Ohlin model attempt to explain?

As of 2013, Latin America has a capital-to-labor ratio akin to what income category of nation?

Latin American economies tend to be labor _____, and capital _____.

Which country in Latin America has signed the most FTAs?

An efficiency loss that results from a RTA because less efficient member countries displace more efficient nonmember countries is known as:

Suppose that Latin America's trade with the rest of the world was free of trade barriers and the labor markets of the region were flexible. Describe what would happen to the price of labor and the distribution of income.

If a nation X can produce both machines and commodities more efficiently than nation Y, then nation X is said to have a(n) ______ over nation Y.

Latin American Economic History

Economic Growth and Latin America

Limits to Growth in Latin America

Growth and the Environment in Latin America

Latin American and Primary Commodities

Import Substitution in Latin America

Exchange-Rate Policy

Financing Current-Account Deficits

Macroeconomic Policy in Latin America

Macroeconomic Stability

Poverty Inequality

Economic Policy Debates in Latin America

Filters

By importing something which is cheaper internationally than domestically, consumer welfare , and producer welfare .

Latin American economies tend to be labor _, and capital _.