Question 1

Ultimately, trade agreements are necessary because

Accepted Answer

A) tariff reduction can be politically popular within many countries. 
B) tariff reduction can be politically unpopular within many countries. 
C) farmers need to be assured of access to foreign markets. 
D) exports make everyone worse off. 
A) tariff reduction can be politically popular within many countries. 
B) tariff reduction can be politically unpopular within many countries. 
C) farmers need to be assured of access to foreign markets. 
D) exports make everyone worse off.

Question 2

Between 1990 and 2007,

Accepted Answer

A) U.S. exports to Canada increased rather steadily. 
B) U.S. imports from Mexico decreased precipitously. 
C) U.S. exports to Mexico decreased rather steadily. 
D) all of the above. 
A) U.S. exports to Canada increased rather steadily. 
B) U.S. imports from Mexico decreased precipitously. 
C) U.S. exports to Mexico decreased rather steadily. 
D) all of the above.

Question 3

A strategic trade policy of questionable success was

Accepted Answer

A) Japan's elimination of tariffs on rice imports. 
B) U)S. consideration of legalizing marijuana. 
C) Britain and France subsidizing AIRBUS. 
D) Iraq withholding oil from the world market. 
A) Japan's elimination of tariffs on rice imports. 
B) U)S. consideration of legalizing marijuana. 
C) Britain and France subsidizing AIRBUS. 
D) Iraq withholding oil from the world market.

Question 4

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

Accepted Answer

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

Question 5

A country that limits imports by requiring a lengthy inspection process is using

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 6

CAFTA governs

Accepted Answer

A) agricultural trade only 
B) trade between the U.S., Canada, and Central America 
C) trade between California and the rest of the U.S. 
D) health food products 
A) agricultural trade only 
B) trade between the U.S., Canada, and Central America 
C) trade between California and the rest of the U.S. 
D) health food products

Question 7

In the 2008 presidential election campaign, then candidate Obama proposed renegotiating NAFTA to provide greater protections for

Accepted Answer

A) drug traffickers 
B) Canadian corporations 
C) U)S. corporations 
D) workers 
A) drug traffickers 
B) Canadian corporations 
C) U)S. corporations 
D) workers

Question 8

Strategic trade policies are designed to increase the benefits of trade to

Accepted Answer

A) everyone. 
B) a single country. 
C) the two countries entering an agreement. 
D) the world. 
A) everyone. 
B) a single country. 
C) the two countries entering an agreement. 
D) the world.

Question 9

The notion of creative destruction suggests that

Accepted Answer

A) people need to lose their jobs involuntarily to seize better opportunities. 
B) people are generally lazy and that losing a job shakes them out of that. 
C) people are not well-trained enough to keep the jobs they have. 
D) it is always easier to scramble an egg than to unscramble one. 
A) people need to lose their jobs involuntarily to seize better opportunities. 
B) people are generally lazy and that losing a job shakes them out of that. 
C) people are not well-trained enough to keep the jobs they have. 
D) it is always easier to scramble an egg than to unscramble one.

Question 10

The number of U.S. job losses certified by the U.S. Department of Labor as NAFTA-related was

Accepted Answer

A) 100,000. 
B)  500,000. 
C)  1,500,000. 
D)  145 million. 
A) 100,000. 
B)  500,000. 
C)  1,500,000. 
D)  145 million.

Question 11

Limiting trade can be accomplished with

Accepted Answer

A) tariffs. 
B) quotas. 
C) non-tariff regulatory barriers. 
D) all of the above 
A) tariffs. 
B) quotas. 
C) non-tariff regulatory barriers. 
D) all of the above

Question 12

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 one hundred unskilled worker-days are moved from producing hammocks to producing catheters in the U.S., while one hundred twenty 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 additional catheters and thirty fewer hammocks. 
B) thirty additional catheters and five additional hammocks. 
C) ten additional catheters and sixty additional hammocks. 
D) no net change in production of the two goods would occur. 
A) five additional catheters and thirty fewer hammocks. 
B) thirty additional catheters and five additional hammocks. 
C) ten additional catheters and sixty additional hammocks. 
D) no net change in production of the two goods would occur.

Question 13

Between 1995 and 1998, soon after NAFTA took effect,

Accepted Answer

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

Question 14

In late 2008, Congress rejected a proposed trade pact with Chile tied to

Accepted Answer

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

Question 15

Trade agreements are designed to limit the ability of a country to put on

Accepted Answer

A) tariffs only. 
B) quotas only. 
C) tariffs and quotas. 
D) neither tariffs or quotas. 
A) tariffs only. 
B) quotas only. 
C) tariffs and quotas. 
D) neither tariffs or quotas.

Question 16

A country that limits imports of a good by restricting the number that be imported is using

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 17

Theoretically, strategic trade policies are ones that allow for countries that utilize them

Accepted Answer

A) to gain more from trade than they would if trade were free. 
B) to have cheaper imports. 
C) to get more money for each unit of export. 
D) to help increase all trade around the world. 
A) to gain more from trade than they would if trade were free. 
B) to have cheaper imports. 
C) to get more money for each unit of export. 
D) to help increase all trade around the world.

Question 18

Many individuals around the world oppose the WTO because they believe it

Accepted Answer

A) unfairly favors the interests of developing countries at the expense of developed countries. 
B) unfairly favors the interests of large corporations at the expense of workers. 
C) encourages imposition of unnecessarily restrictive environmental protection regulations. 
D) prevents young people around the world from entering the workforce as early in life as they choose. 
A) unfairly favors the interests of developing countries at the expense of developed countries. 
B) unfairly favors the interests of large corporations at the expense of workers. 
C) encourages imposition of unnecessarily restrictive environmental protection regulations. 
D) prevents young people around the world from entering the workforce as early in life as they choose.

Question 19

Which of the following trade agreements includes the United States?

Accepted Answer

A) NAFTA 
B) CAFTA 
C) GATT 
D) All of these include the United States 
A) NAFTA 
B) CAFTA 
C) GATT 
D) All of these include the United States

Question 20

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

Accepted Answer

A) 5% 
B) 15% 
C) 22% 
D) 75% 
A) 5% 
B) 15% 
C) 22% 
D) 75%

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

Ultimately, trade agreements are necessary because

Between 1990 and 2007,

A strategic trade policy of questionable success was

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

A country that limits imports by requiring a lengthy inspection process is using

CAFTA governs

In the 2008 presidential election campaign, then candidate Obama proposed renegotiating NAFTA to provide greater protections for

Strategic trade policies are designed to increase the benefits of trade to

The notion of creative destruction suggests that

The number of U.S. job losses certified by the U.S. Department of Labor as NAFTA-related was

Limiting trade can be accomplished with

Between 1995 and 1998, soon after NAFTA took effect,

In late 2008, Congress rejected a proposed trade pact with Chile tied to

Trade agreements are designed to limit the ability of a country to put on

A country that limits imports of a good by restricting the number that be imported is using

Theoretically, strategic trade policies are ones that allow for countries that utilize them

Many individuals around the world oppose the WTO because they believe it

Which of the following trade agreements includes the United States?

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

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

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

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

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters