Question 1

Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used.

Accepted Answer

A) True 
 B)False

Question 2

The system of trade rounds under GATT and the WTO has been successful at creating trade rules and reducing trade barriers.

Accepted Answer

A) True 
 B)False

Question 3

A countervailing duty is a tariff that is levied to counteract

Accepted Answer

A) the dumping of goods in the domestic market by foreign firms. 
B) a sudden surge of imports which hurt a domestic industry. 
C) subsidies given to foreign firms by their own governments. 
D) the tariff on domestic goods that are enacted by foreign governments. 
E) low prices for imported goods that are made in countries with low wages. 
A) the dumping of goods in the domestic market by foreign firms. 
B) a sudden surge of imports which hurt a domestic industry. 
C) subsidies given to foreign firms by their own governments. 
D) the tariff on domestic goods that are enacted by foreign governments. 
E) low prices for imported goods that are made in countries with low wages.

Question 4

Which of the following is FALSE?

Accepted Answer

A) The analysis of agriculture,textiles,and clothing in the EU,the United States,and Japan supports the proposition that older sectors of the economy are most protected,particularly in cases where the nation has lost a substantial part of its comparative advantage. 
B) Even when tariffs are relatively low,the cost per job saved tends to be high. 
C) Commercial policy is grossly inefficient at achieving the objective of job preservation. 
D) Trade barriers in high-income countries never cause unintended consequences in low-income countries because most of their trade is with other industrialized countries. 
A) The analysis of agriculture,textiles,and clothing in the EU,the United States,and Japan supports the proposition that older sectors of the economy are most protected,particularly in cases where the nation has lost a substantial part of its comparative advantage. 
B) Even when tariffs are relatively low,the cost per job saved tends to be high. 
C) Commercial policy is grossly inefficient at achieving the objective of job preservation. 
D) Trade barriers in high-income countries never cause unintended consequences in low-income countries because most of their trade is with other industrialized countries.

Question 5

The most common form of tariff is a countervailing duty.

Accepted Answer

A) True 
 B)False

Question 6

Dumping occurs when a firm

Accepted Answer

A) sells too much of a good in a foreign country. 
B) sells in a foreign country at prices that are below fair value. 
C) sells in its home market at prices that are below the average price charged by its competitors. 
D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. 
E) charges more than a fair price. 
A) sells too much of a good in a foreign country. 
B) sells in a foreign country at prices that are below fair value. 
C) sells in its home market at prices that are below the average price charged by its competitors. 
D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. 
E) charges more than a fair price.

Question 7

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Accepted Answer

A) True 
 B)False

Question 8

Choose one of the arguments countries generally use to justify protection for a particular industry.Describe the argument and any inherent problems with it.Is the argument primarily an economic or a noneconomic one?

Accepted Answer

The revenue argument says that for low i

Question 9

In the United States,which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Accepted Answer

The United

Question 10

One reason why producers have an incentive to organize in favor of protection is because

Accepted Answer

A) producer gains are spread across so many firms that no one gets a large share of the benefits. 
B) producer gains are relatively concentrated. 
C) there is no real cost to the economy. 
D) producer gains outweigh consumer losses. 
E) it is a cheap way to keep their employees happy. 
A) producer gains are spread across so many firms that no one gets a large share of the benefits. 
B) producer gains are relatively concentrated. 
C) there is no real cost to the economy. 
D) producer gains outweigh consumer losses. 
E) it is a cheap way to keep their employees happy.

Question 11

"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity.Which of the following does NOT contribute to increasing productivity?

Accepted Answer

A) Education and training 
B) Government subsidies 
C) Infrastructure 
D) Capital 
A) Education and training 
B) Government subsidies 
C) Infrastructure 
D) Capital

Question 12

Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP.

Accepted Answer

A) True 
 B)False

Question 13

In the United States,which part of government investigates claims of subsidies or dumping?

Accepted Answer

The International Tr

Question 14

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Accepted Answer

A) True 
 B)False

Question 15

Historically,one of the most common reasons for countries to impose tariffs was

Accepted Answer

A) to protect their national security. 
B) to raise revenue for the government. 
C) to eliminate unemployment. 
D) to counter inflation. 
E) None of the above. 
A) to protect their national security. 
B) to raise revenue for the government. 
C) to eliminate unemployment. 
D) to counter inflation. 
E) None of the above.

Question 16

A major difficulty with the infant industry argument for protection is that

Accepted Answer

A) government revenue will fall with a tariff. 
B) it requires the nation to fall into the large country case for tariff protection. 
C) effective rates of protection are usually greater than nominal rates. 
D) the measurement of production externalities is hard and uncertain. 
E) the productivity of infant industries is usually declining. 
A) government revenue will fall with a tariff. 
B) it requires the nation to fall into the large country case for tariff protection. 
C) effective rates of protection are usually greater than nominal rates. 
D) the measurement of production externalities is hard and uncertain. 
E) the productivity of infant industries is usually declining.

Question 17

Television programming might be targeted for protection in a country using which of the following arguments?

Accepted Answer

A) Infant industry 
B) National security 
C) Need for retaliation 
D) Labor argument 
E) Cultural protection 
A) Infant industry 
B) National security 
C) Need for retaliation 
D) Labor argument 
E) Cultural protection

Question 18

Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection.

Accepted Answer

Traditional knowledge is often embedded

Question 19

Infant industry protection requires

Accepted Answer

A) a positive technological externality. 
B) a national security externality. 
C) time limited protection. 
D) Both A and B. 
E) Both A and C. 
A) a positive technological externality. 
B) a national security externality. 
C) time limited protection. 
D) Both A and B. 
E) Both A and C.

Question 20

If a country faces action under Section 301 of the U.S.Trade Act of 1974,it means that the country has

Accepted Answer

A) exceeded average import growth by more than 301 percent. 
B) exceeded average export growth by more than 301 percent. 
C) tariffs that are above 301 percent. 
D) been charged by the United States with systematically engaging in unfair trade practices. 
E) been charged by the WTO with violating its trade obligations. 
A) exceeded average import growth by more than 301 percent. 
B) exceeded average export growth by more than 301 percent. 
C) tariffs that are above 301 percent. 
D) been charged by the United States with systematically engaging in unfair trade practices. 
E) been charged by the WTO with violating its trade obligations.

Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used.

The system of trade rounds under GATT and the WTO has been successful at creating trade rules and reducing trade barriers.

A countervailing duty is a tariff that is levied to counteract

Which of the following is FALSE?

The most common form of tariff is a countervailing duty.

Dumping occurs when a firm

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Choose one of the arguments countries generally use to justify protection for a particular industry.Describe the argument and any inherent problems with it.Is the argument primarily an economic or a noneconomic one?

In the United States,which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

One reason why producers have an incentive to organize in favor of protection is because

"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity.Which of the following does NOT contribute to increasing productivity?

Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP.

In the United States,which part of government investigates claims of subsidies or dumping?

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Historically,one of the most common reasons for countries to impose tariffs was

A major difficulty with the infant industry argument for protection is that

Television programming might be targeted for protection in a country using which of the following arguments?

Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection.

Infant industry protection requires

If a country faces action under Section 301 of the U.S.Trade Act of 1974,it means that the country has

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

Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used.

The system of trade rounds under GATT and the WTO has been successful at creating trade rules and reducing trade barriers.

A countervailing duty is a tariff that is levied to counteract

Which of the following is FALSE?

The most common form of tariff is a countervailing duty.

Dumping occurs when a firm

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Choose one of the arguments countries generally use to justify protection for a particular industry.Describe the argument and any inherent problems with it.Is the argument primarily an economic or a noneconomic one?

In the United States,which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

One reason why producers have an incentive to organize in favor of protection is because

"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity.Which of the following does NOT contribute to increasing productivity?

Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP.

In the United States,which part of government investigates claims of subsidies or dumping?

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Historically,one of the most common reasons for countries to impose tariffs was

A major difficulty with the infant industry argument for protection is that

Television programming might be targeted for protection in a country using which of the following arguments?

Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection.

Infant industry protection requires

If a country faces action under Section 301 of the U.S.Trade Act of 1974,it means that the country has

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