Question 1

How did the Uruguay Round of GATT impact agriculture?

Accepted Answer

Many quotas were converted to tariffs;many industrial countries agreed to reduce their direct support of the farm sector

Question 2

Under Special 301,what is the U.S.government required to do?

Accepted Answer

Monitor intellectual property right enforcement around the world

Question 3

The pattern of protection in industrial countries is particularly harmful to the interests of

Accepted Answer

A) low-income developing countries. 
B) high-income industrial countries. 
C) Asian nations. 
D) European nations. 
E) None of the above. 
A) low-income developing countries. 
B) high-income industrial countries. 
C) Asian nations. 
D) European nations. 
E) None of the above. A

Question 4

There are asymmetric incentives to support and to oppose protectionist trade policies,with the stronger incentives going to those that would seek protection.

Accepted Answer

A) True 
 B)False

Question 5

High-income industrial nations such as the United States and Japan tend to have their highest tariffs in

Accepted Answer

A) newer,high-technology manufacturing industries. 
B) capital-intensive,diversified manufacturing. 
C) agriculture,clothing,and textiles 
D) Both A and B. 
E) None of the above. 
A) newer,high-technology manufacturing industries. 
B) capital-intensive,diversified manufacturing. 
C) agriculture,clothing,and textiles 
D) Both A and B. 
E) None of the above.

Question 6

Describe some of the gains from lowering trade barriers that may be difficult to measure.

Accepted Answer

Cost savings from scale econom

Question 7

Agriculture,clothing,and textiles are singled out for treatment in the chapter because

Accepted Answer

A) they tend to be the most highly protected sectors of industrial economies. 
B) they tend to be the least-protected sectors internationally. 
C) the policies of high-income nations in these sectors may have harmful effects in low-income countries. 
D) A and C are both correct. 
E) B and C are both correct. 
A) they tend to be the most highly protected sectors of industrial economies. 
B) they tend to be the least-protected sectors internationally. 
C) the policies of high-income nations in these sectors may have harmful effects in low-income countries. 
D) A and C are both correct. 
E) B and C are both correct.

Question 8

When comparing the U.S.and Mexican car assembly industries,the disadvantage of higher U.S.wages is offset by

Accepted Answer

A) Mexican trade barriers. 
B) trade adjustment assistance in the United States. 
C) higher productivity in the United States. 
D) a lower opportunity cost in Mexico. 
E) "Buy American" advertising campaigns in the United States. 
A) Mexican trade barriers. 
B) trade adjustment assistance in the United States. 
C) higher productivity in the United States. 
D) a lower opportunity cost in Mexico. 
E) "Buy American" advertising campaigns in the United States.

Question 9

Which of the following is NOT a reason people tolerate tariffs and quotas?

Accepted Answer

A) Ignorance 
B) Their personal jobs depend on tariffs and quotas. 
C) Costs may be hidden and hard to quantify. 
D) Costs of the policy are spread over a large number of people. 
E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection. 
A) Ignorance 
B) Their personal jobs depend on tariffs and quotas. 
C) Costs may be hidden and hard to quantify. 
D) Costs of the policy are spread over a large number of people. 
E) The marginal expenses to fight the protection outweigh the personal marginal costs of the protection.

Question 10

If a nation protects an industry because it believes that there are positive externalities in the production process,it is asserting that the free market will

Accepted Answer

A) produce less than is optimal from society's point of view. 
B) produce more than is optimal from society's point of view. 
C) produce the correct amount but charge too high a price. 
D) produce the correct amount but charge too low a price. 
E) None of the above. 
A) produce less than is optimal from society's point of view. 
B) produce more than is optimal from society's point of view. 
C) produce the correct amount but charge too high a price. 
D) produce the correct amount but charge too low a price. 
E) None of the above.

Question 11

Tariffs are highest in which sector internationally?

Accepted Answer

A) Agriculture 
B) Energy 
C) Technology 
D) Automobiles 
A) Agriculture 
B) Energy 
C) Technology 
D) Automobiles

Question 12

The biggest flaw in the logic of the labor argument is the failure to consider

Accepted Answer

A) the needs of developing countries. 
B) the impact of tariffs on inflation. 
C) the differences in national productivity levels. 
D) the strategy of multinational businesses. 
E) the impact on employment levels. 
A) the needs of developing countries. 
B) the impact of tariffs on inflation. 
C) the differences in national productivity levels. 
D) the strategy of multinational businesses. 
E) the impact on employment levels.

Question 13

301-actions are more frequently used as a tool of trade policy,especially since the formation of the World Trade Organization.

Accepted Answer

A) True 
 B)False

Question 14

The more difficult the goal,the more likely military force is going to be needed to back up economic sanctions.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following describes the asymmetry Moncur Olson observed in the incentives to support and oppose trade policy?

Accepted Answer

A) The benefits of those seeking protection outweigh the costs imposed by the protection. 
B) The benefits of protection are spread out over a large number of firms and industries,but the costs are concentrated on consumers. 
C) The benefits of policy are concentrated,and the costs are spread out over a large number of participants. 
D) The costs of protection are concentrated on a few firms,and the benefits of protection are spread out over a large number of consumers. 
A) The benefits of those seeking protection outweigh the costs imposed by the protection. 
B) The benefits of protection are spread out over a large number of firms and industries,but the costs are concentrated on consumers. 
C) The benefits of policy are concentrated,and the costs are spread out over a large number of participants. 
D) The costs of protection are concentrated on a few firms,and the benefits of protection are spread out over a large number of consumers.

Question 16

The WTO's Doha Development Agenda is only considering market access issues in agriculture,such as tariffs and quotas,because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

Accepted Answer

A) True 
 B)False

Question 17

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners,including trading partners that heavily protect their home markets.

Accepted Answer

A) True 
 B)False

Question 18

Describe the four legal procedures available to U.S.firms to seek protection from foreign competition.What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

Accepted Answer

Countervailing duties are granted in res

Question 19

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Accepted Answer

A) an infant industry tariff. 
B) a high rate of effective protection to keep local mines in business. 
C) a quota on imports of the mineral. 
D) a low nominal rate of protection. 
E) a stockpile. 
A) an infant industry tariff. 
B) a high rate of effective protection to keep local mines in business. 
C) a quota on imports of the mineral. 
D) a low nominal rate of protection. 
E) a stockpile.

Question 20

Since the end of World War II,

Accepted Answer

A) tariffs around the world fell substantially. 
B) agricultural subsidies were significantly reduced. 
C) most nations began to apply tariffs uniformly across all industries. 
D) tariffs increased in low-income countries and fell a small percentage in high-income countries. 
A) tariffs around the world fell substantially. 
B) agricultural subsidies were significantly reduced. 
C) most nations began to apply tariffs uniformly across all industries. 
D) tariffs increased in low-income countries and fell a small percentage in high-income countries.

How did the Uruguay Round of GATT impact agriculture?

Under Special 301,what is the U.S.government required to do?

The pattern of protection in industrial countries is particularly harmful to the interests of

There are asymmetric incentives to support and to oppose protectionist trade policies,with the stronger incentives going to those that would seek protection.

High-income industrial nations such as the United States and Japan tend to have their highest tariffs in

Describe some of the gains from lowering trade barriers that may be difficult to measure.

Agriculture,clothing,and textiles are singled out for treatment in the chapter because

When comparing the U.S.and Mexican car assembly industries,the disadvantage of higher U.S.wages is offset by

Which of the following is NOT a reason people tolerate tariffs and quotas?

If a nation protects an industry because it believes that there are positive externalities in the production process,it is asserting that the free market will

Tariffs are highest in which sector internationally?

The biggest flaw in the logic of the labor argument is the failure to consider

301-actions are more frequently used as a tool of trade policy,especially since the formation of the World Trade Organization.

The more difficult the goal,the more likely military force is going to be needed to back up economic sanctions.

Which of the following describes the asymmetry Moncur Olson observed in the incentives to support and oppose trade policy?

The WTO's Doha Development Agenda is only considering market access issues in agriculture,such as tariffs and quotas,because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners,including trading partners that heavily protect their home markets.

Describe the four legal procedures available to U.S.firms to seek protection from foreign competition.What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Since the end of World War II,

The United States in a Global Economy

International Economic Institutions Since World War Ii

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

The Bric Countries in the World Economy

Filters

Exam 7: Commercial Policy

How did the Uruguay Round of GATT impact agriculture?

Under Special 301,what is the U.S.government required to do?

The pattern of protection in industrial countries is particularly harmful to the interests of

There are asymmetric incentives to support and to oppose protectionist trade policies,with the stronger incentives going to those that would seek protection.

High-income industrial nations such as the United States and Japan tend to have their highest tariffs in

Describe some of the gains from lowering trade barriers that may be difficult to measure.

Agriculture,clothing,and textiles are singled out for treatment in the chapter because

When comparing the U.S.and Mexican car assembly industries,the disadvantage of higher U.S.wages is offset by

Which of the following is NOT a reason people tolerate tariffs and quotas?

If a nation protects an industry because it believes that there are positive externalities in the production process,it is asserting that the free market will

Tariffs are highest in which sector internationally?

The biggest flaw in the logic of the labor argument is the failure to consider

301-actions are more frequently used as a tool of trade policy,especially since the formation of the World Trade Organization.

The more difficult the goal,the more likely military force is going to be needed to back up economic sanctions.

Which of the following describes the asymmetry Moncur Olson observed in the incentives to support and oppose trade policy?

The WTO's Doha Development Agenda is only considering market access issues in agriculture,such as tariffs and quotas,because export subsidies and production subsidies are considered less harmful and have not been part of the GATT or WTO agenda.

Some economists argue that free trade is beneficial regardless of the actions of a country's trading partners,including trading partners that heavily protect their home markets.

Describe the four legal procedures available to U.S.firms to seek protection from foreign competition.What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?

Some economists suggest the optimal way for a nation to protect its access to a strategic mineral is with

Since the end of World War II,

The United States in a Global Economy

International Economic Institutions Since World War Ii

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

The Theory of Tariffs and Quotas

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

The Bric Countries in the World Economy

Filters