Question 1

According to some labor unions in advanced countries such as Canada and the United States, the international trade rules of the World Trade Organization could result in

Accepted Answer

A)  increases in the safety of workers. 
B)  increase the productivity of workers. 
C)  higher earnings and profits for business. 
D)  reductions in job protections for workers.

Question 2

The U.S.government fosters large-scale projects such as irrigation facilities in agriculture.

Accepted Answer

A) True 
 B)False

Question 3

The result of normal trade relations (the most-favored-nation clause) is

Accepted Answer

A)  a discriminatory tariff structure. 
B)  a nondiscriminatory tariff structure. 
C)  an increase of all tariff rates between all nations. 
D)  an elimination of all tariff rates for all nations.

Question 4

The General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have resulted in

Accepted Answer

A)  termination of export subsidies applied to manufactured goods. 
B)  termination of import tariffs applied to manufactured goods. 
C)  encouragement of beggar-thy-neighbor policies. 
D)  reductions in trade barriers via multilateral negotiations.

Question 5

Julia lost her job because of foreign competition.She has now trained in nursing and is working in a hospital.Which benefit of the U.S.government do you think helped her make this adjustment?

Accepted Answer

A)  wage insurance 
B)  weekly income support 
C)  reimbursement of relocation costs 
D)  assistance in preparing for and obtaining new employment

Question 6

Industrial policies of the U.S.government have included subsidizing particular firms to promote national champions, nationalizing basic industries, and encouraging cartelization of industries.

Accepted Answer

A) True 
 B)False

Question 7

The first tariff in the United States (1789) was intended mainly

Accepted Answer

A)  to raise revenue for the U.S. government. 
B)  to protect American farmers from foreign competition. 
C)  to protect American manufacturers from foreign competition. 
D)  to offset unfair trading practices of European nations.

Question 8

Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain over domestic producers because of foreign

Accepted Answer

A)  tariffs. 
B)  subsidies. 
C)  quotas. 
D)  buy-national policies.

Question 9

The strongest political pressure for a trade policy that results in higher protectionism comes from

Accepted Answer

A)  domestic workers lobbying for import restrictions. 
B)  domestic workers lobbying for export restrictions. 
C)  domestic consumers lobbying for export restrictions. 
D)  domestic consumers lobbying for import restrictions.

Question 10

Section 301 of the Trade Act of 1974 emphasized

Accepted Answer

A)  the use of strategic trade policy. 
B)  the welfare effects of export subsidies. 
C)  relatively low-wage levels of developing countries. 
D)  unfair trading practices of American trading partners.

Question 11

The purpose of the U.S.Export-Import Bank is to provide subsidized loans to American import-competing producers.

Accepted Answer

A) True 
 B)False

Question 12

Suppose the United States imposes trade sanctions (export quotas) on grain sold to the Russians.Assuming other nations do NOT increase grain exports to the Russians, all of the following would occur EXCEPT

Accepted Answer

A)  grain prices would rise in Russia. 
B)  consumer surplus would decrease for the Russians. 
C)  grain prices would rise in the United States. 
D)  export revenues would decrease for U.S. producers.

Question 13

Established in 1995, the World Trade Organization took charge of administering the new global trade rules agreed upon in the Uruguay Round of multilateral trade negotiations.

Accepted Answer

A) True 
 B)False

Question 14

The Uruguay Round of trade negotiations was primarily concerned with

Accepted Answer

A)  import tariffs. 
B)  export tariffs. 
C)  economic sanctions. 
D)  nontariff trade barriers.

Question 15

The Reciprocal Trade Agreements Act of 1934 allowed the president to lower tariffs by up to ______________ of the existing level, subject to a tariff reduction by our trading partner.

Accepted Answer

A)  15 percent 
B)  35 percent 
C)  50 percent 
D)  75 percent

Question 16

About how many nations are members of the World Trade Organization?

Accepted Answer

A)  90 
B)  110 
C)  130 
D)  160

Question 17

Economists tend to agree that in defining the rules of trade among countries, ______________ is preferable to ______________.

Accepted Answer

A)  freer trade, protectionism 
B)  growth, freer trade 
C)  freer trade, growth 
D)  protectionism, freer trade

Question 18

The Uruguay Round of multilateral trade negotiations succeeded in establishing the World Trade Organization.

Accepted Answer

A) True 
 B)False

Question 19

Trade adjustment assistance policies

Accepted Answer

A)  can resolve all workers' challenges to free trade. 
B)  attempt to share gains from free trade with disadvantaged workers. 
C)  have never been used to sustain a losing business concern. 
D)  are financed by state and local tax revenues.

Question 20

Under the original provisions of the Reciprocal Trade Agreements Act, the president of the United States was authorized to cut tariffs up to

Accepted Answer

A)  10 percent. 
B)  50 percent. 
C)  75 percent. 
D)  100 percent.

Exam 6: Trade Regulations and Industrial Policies

According to some labor unions in advanced countries such as Canada and the United States, the international trade rules of the World Trade Organization could result in

The U.S.government fosters large-scale projects such as irrigation facilities in agriculture.

The result of normal trade relations (the most-favored-nation clause) is

The General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have resulted in

Julia lost her job because of foreign competition.She has now trained in nursing and is working in a hospital.Which benefit of the U.S.government do you think helped her make this adjustment?

Industrial policies of the U.S.government have included subsidizing particular firms to promote national champions, nationalizing basic industries, and encouraging cartelization of industries.

The first tariff in the United States (1789) was intended mainly

Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain over domestic producers because of foreign

The strongest political pressure for a trade policy that results in higher protectionism comes from

Section 301 of the Trade Act of 1974 emphasized

The purpose of the U.S.Export-Import Bank is to provide subsidized loans to American import-competing producers.

Suppose the United States imposes trade sanctions (export quotas) on grain sold to the Russians.Assuming other nations do NOT increase grain exports to the Russians, all of the following would occur EXCEPT

Established in 1995, the World Trade Organization took charge of administering the new global trade rules agreed upon in the Uruguay Round of multilateral trade negotiations.

The Uruguay Round of trade negotiations was primarily concerned with

The Reciprocal Trade Agreements Act of 1934 allowed the president to lower tariffs by up to ______________ of the existing level, subject to a tariff reduction by our trading partner.

About how many nations are members of the World Trade Organization?

Economists tend to agree that in defining the rules of trade among countries, is preferable to .

The Uruguay Round of multilateral trade negotiations succeeded in establishing the World Trade Organization.

Trade adjustment assistance policies

Under the original provisions of the Reciprocal Trade Agreements Act, the president of the United States was authorized to cut tariffs up to