Question 1

Which of the following is a set of rules outlining when tariffs are appropriate and when they are not?

Accepted Answer

A) NAFTA 
B) GATT 
C) WTO 
D) USSR 
A) NAFTA 
B) GATT 
C) WTO 
D) USSR B

Question 2

NAFTA has greatly improved cooperation between the U.S. and Mexico in the regulation of

Accepted Answer

A) undocumented Mexican immigrant workers in the U.S. 
B) Mexican banks operating in the U.S. 
C) pollution created by maquiladoras operating in Mexico along the U.S. border. 
D) travel by U.S. tourists to Mexican beaches during Spring Break. 
A) undocumented Mexican immigrant workers in the U.S. 
B) Mexican banks operating in the U.S. 
C) pollution created by maquiladoras operating in Mexico along the U.S. border. 
D) travel by U.S. tourists to Mexican beaches during Spring Break. C

Question 3

Which of the following is a organization designed to settle trade disputes?

Accepted Answer

A) NAFTA 
B) GATT 
C) WTO 
D) USSR 
A) NAFTA 
B) GATT 
C) WTO 
D) USSR C

Question 4

If one nation retaliates against another's tariffs with tariffs of their own the GATT stipulates that the retaliatory tariff must

Accepted Answer

A) be on the same good. 
B) end within a year. 
C) be on a good whose sales are roughly similar. 
D) be submitted to the WTO for prior approval. 
A) be on the same good. 
B) end within a year. 
C) be on a good whose sales are roughly similar. 
D) be submitted to the WTO for prior approval.

Question 5

Which of the following trade agreements includes Costa Rica?

Accepted Answer

A) NAFTA 
B) CAFTA 
C) AFL-CIO 
D) All of these include Costa Rica. 
A) NAFTA 
B) CAFTA 
C) AFL-CIO 
D) All of these include Costa Rica.

Question 6

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If two hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while three hundred skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by

Accepted Answer

A) five hundred additional catheters and one hundred fewer hammocks. 
B) three hundred additional catheters and three hundred additional hammocks. 
C) one hundred additional catheters and five hundred additional hammocks. 
D) no net change in production of the two goods would occur. 
A) five hundred additional catheters and one hundred fewer hammocks. 
B) three hundred additional catheters and three hundred additional hammocks. 
C) one hundred additional catheters and five hundred additional hammocks. 
D) no net change in production of the two goods would occur.

Question 7

In late 2008, President Bush proposed that a trade pact with Chile be tied to

Accepted Answer

A) a rescue package for the U.S. auto industry 
B) an overhaul of the U.S. Postal Service 
C) negotiations with Colombian drug lords 
D) a bailout of the U.S. tobacco industry 
A) a rescue package for the U.S. auto industry 
B) an overhaul of the U.S. Postal Service 
C) negotiations with Colombian drug lords 
D) a bailout of the U.S. tobacco industry

Question 8

From 1999 to 2007, U.S exports to Mexico grew each year by approximately

Accepted Answer

A) 0.5% 
B) 2.7% 
C) 8.1% 
D) 12.7% 
A) 0.5% 
B) 2.7% 
C) 8.1% 
D) 12.7%

Question 9

Which of the following trade agreements includes Mexico?

Accepted Answer

A) NAFTA 
B) CAFTA 
C) GATT 
D) All of these include Mexico 
A) NAFTA 
B) CAFTA 
C) GATT 
D) All of these include Mexico

Question 10

Which of the following purports to be a "free-trade" agreement?

Accepted Answer

A) NAFTA 
B) GATT 
C) WTO 
D) USSR 
A) NAFTA 
B) GATT 
C) WTO 
D) USSR

Question 11

Which of the following works to limit trade by explicitly raising prices (i.e., as a tax)?

Accepted Answer

A) tariffs 
B) quotas 
C) non-tariff regulatory barriers 
D) subsidies 
A) tariffs 
B) quotas 
C) non-tariff regulatory barriers 
D) subsidies

Question 12

International protesters have expressed concerns that

Accepted Answer

A) international trade decentralizes control of economic issues. 
B) international finance centralizes control of economic issues in the hands of a relative few. 
C) international trade makes unionizing efforts easier. 
D) poor nations are over-represented at trade talks. 
A) international trade decentralizes control of economic issues. 
B) international finance centralizes control of economic issues in the hands of a relative few. 
C) international trade makes unionizing efforts easier. 
D) poor nations are over-represented at trade talks.

Question 13

Proposals for bilateral reduction of tariffs in the U.S. and Canada have been developed through

Accepted Answer

A) GATT. 
B) NAFTA. 
C) UNESCO. 
D) SDR. 
A) GATT. 
B) NAFTA. 
C) UNESCO. 
D) SDR.

Question 14

Trade disputes between the U.S. and Japan could be mediated by

Accepted Answer

A) the WTO. 
B) NAFTA. 
C) UNESCO. 
D) U)S. courts. 
A) the WTO. 
B) NAFTA. 
C) UNESCO. 
D) U)S. courts.

Question 15

Production of a catheter in the U.S. requires either one skilled worker-day or two unskilled worker-days, while production of the same device in Guatemala, because of its relative lack of transportation and communications infrastructure, requires either three skilled worker-days or four unskilled worker-days. Production of a hammock in the U.S. requires one-fourth skilled worker-day or one-third unskilled worker-day, while production of a hammock in Guatemala requires one-third skilled worker-day or one unskilled worker day. If eighty unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while ninety skilled worker-days are moved from producing catheters to producing hammocks in Guatemala, combined production of the two goods in the two countries will change by

Accepted Answer

A) ten additional catheters and thirty additional hammocks. 
B) thirty additional catheters and five additional hammocks. 
C) ten additional catheters and sixty fewer hammocks. 
D) no net change in production of the two goods would occur. 
A) ten additional catheters and thirty additional hammocks. 
B) thirty additional catheters and five additional hammocks. 
C) ten additional catheters and sixty fewer hammocks. 
D) no net change in production of the two goods would occur.

Question 16

One of the major issues in the Uruguay round of GATT was

Accepted Answer

A) domestic content provisions for movies and television. 
B) the use of trade as a diplomatic weapon. 
C) the question of the Euro's convertibility. 
D) the placement of the WTO offices in Uruguay. 
A) domestic content provisions for movies and television. 
B) the use of trade as a diplomatic weapon. 
C) the question of the Euro's convertibility. 
D) the placement of the WTO offices in Uruguay.

Question 17

Which of the following purports to be a "free-trade" agreement?

Accepted Answer

A) CAFTA 
B) GATT 
C) WTO 
D) USSR 
A) CAFTA 
B) GATT 
C) WTO 
D) USSR

Question 18

Violent protests against the WTO meeting in Seattle reflected popular concerns over

Accepted Answer

A) the lack of exports. 
B) high tariffs. 
C) the consequences of globalization. 
D) the 2000 Presidential election outcome. 
A) the lack of exports. 
B) high tariffs. 
C) the consequences of globalization. 
D) the 2000 Presidential election outcome.

Question 19

One important issue in the Uruguay round of GATT was

Accepted Answer

A) the treatment of copyrighted material. 
B) the use of trade as a diplomatic weapon. 
C) the question of the Euro's convertibility. 
D) the placement of the WTO offices in Uruguay. 
A) the treatment of copyrighted material. 
B) the use of trade as a diplomatic weapon. 
C) the question of the Euro's convertibility. 
D) the placement of the WTO offices in Uruguay.

Question 20

Between 1999 and 2007, after NAFTA had been in operation for some time,

Accepted Answer

A) U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more. 
B) U.S. exports to Mexico increased, but U.S. imports from Mexico increased even more. 
C) total U.S. exports fell, but total U.S. imports fell even more. 
D) total U.S. imports increased, but total U.S. exports increased even more. 
A) U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more. 
B) U.S. exports to Mexico increased, but U.S. imports from Mexico increased even more. 
C) total U.S. exports fell, but total U.S. imports fell even more. 
D) total U.S. imports increased, but total U.S. exports increased even more.

Exam 21: Nafta, Gatt, Wto: Are Trade Agreements Good for Us

Which of the following is a set of rules outlining when tariffs are appropriate and when they are not?

NAFTA has greatly improved cooperation between the U.S. and Mexico in the regulation of

Which of the following is a organization designed to settle trade disputes?

If one nation retaliates against another's tariffs with tariffs of their own the GATT stipulates that the retaliatory tariff must

Which of the following trade agreements includes Costa Rica?

In late 2008, President Bush proposed that a trade pact with Chile be tied to

From 1999 to 2007, U.S exports to Mexico grew each year by approximately

Which of the following trade agreements includes Mexico?

Which of the following purports to be a "free-trade" agreement?

Which of the following works to limit trade by explicitly raising prices (i.e., as a tax)?

International protesters have expressed concerns that

Proposals for bilateral reduction of tariffs in the U.S. and Canada have been developed through

Trade disputes between the U.S. and Japan could be mediated by

One of the major issues in the Uruguay round of GATT was

Which of the following purports to be a "free-trade" agreement?

Violent protests against the WTO meeting in Seattle reflected popular concerns over

One important issue in the Uruguay round of GATT was

Between 1999 and 2007, after NAFTA had been in operation for some time,

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

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International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

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Income and Wealth Inequality

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Minimum Wage

Ticket Brokers and Ticket Scalping

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