Question 1

The Uruguay Round of trade negotiations lowered:

Accepted Answer

A)  Trade sanctions levied against South Africa 
B)  Trade sanctions levied against the Soviet Union 
C)  Tariffs,but not nontariff trade barriers 
D)  Tariffs as well as nontariff trade barriers

Question 2

The World Trade Organization was established by the ____ of multilateral trade negotiations:

Accepted Answer

A)  Kennedy Round 
B)  Tokyo Round 
C)  Uruguay Round 
D)  Clinton Round

Question 3

____ attempt to produce a fair and free-trading environment in which there exists a level playing field.

Accepted Answer

A)  Trade-remedy laws 
B)  Industrial policies 
C)  Strategic trade policies 
D)  Economic sanctions

Question 4

Figure 6.4 Japanese Market for Jetliners 
-Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose lone producer of jetliners in the world is Boeing and Boeing faces a constant marginal cost of $20 million per jetliner.How much profit will boeing make?

Accepted Answer

A)  0 
B)  $150 million 
C)  $230 million 
D)  $250 million

Question 5

Figure 6.3 Iraqi Computer Market and Economic Sanctions 
-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,$____ is not transferred to other sectors of Iraq's economy and represents deadweight loss.

Accepted Answer

A)  $5000 
B)  $10,000 
C)  $15,000 
D)  $20,000

Question 6

Figure 6.3 Iraqi Computer Market and Economic Sanctions 
-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as:

Accepted Answer

A)  Tax revenue 
B)  Export revenue 
C)  Producer surplus 
D)  Consumer surplus

Question 7

Figure 6.2.Effects of an Export Subsidy 
-Consider Figure 6.2.With free trade,Mexican consumers purchase ____ calculators,Mexican firms produce ____ calculators,and ____ calculators are imported.

Accepted Answer

A)  10,4,6 
B)  10,6,4 
C)  10,8,2 
D)  10,2,8

Question 8

The average tariff rate today on dutiable imports in the United States is approximately:

Accepted Answer

A)  5 percent of the value of imports 
B)  15 percent of the value of imports 
C)  20 percent of the value of imports 
D)  25 percent of the value of imports

Question 9

For the United States,which organization makes loans to foreign buyers of U.S.manufactured goods?

Accepted Answer

A)  Export-Import Bank 
B)  Domestic International Sales Corporation 
C)  Organization for Economic Cooperation and Development 
D)  Commodity Credit Corporation

Question 10

The Uruguay Round of Multilateral Trade Negotiations accomplished all of the following except:

Accepted Answer

A)  Placed primary emphasis on nontariff trade barriers 
B)  Is estimated to yield modest gains in world output and employment 
C)  Achieved cuts in tariffs but not in nontariff trade barriers 
D)  Abolished all barriers to trade in agricultural products

Question 11

The Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods.To American firms,this represents a:

Accepted Answer

A)  Specific subsidy 
B)  Ad valorem subsidy 
C)  Domestic subsidy 
D)  Export subsidy

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

In U.S.trade law,which measure permits the levying of restrictions on fairly traded imports that harm or threaten to harm American manufacturers?

Accepted Answer

A)  Antidumping duty 
B)  Countervailing duty 
C)  National security clause 
D)  Escape clause

Question 14

Figure 6.4 Japanese Market for Jetliners 
-Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose lone producer of jetliners in the world is Boeing and Boeing faces a constant marginal cost of $20 million per jetliner.What price will Boeing charge for jetliners in the Japanese market and how many will they sell?

Accepted Answer

A)  $20 million,23 
B)  $20 million,46 
C)  $30 million,46 
D)  $30 million,23

Question 15

The Uruguay Round of trade negotiations resulted in the General Agreement on Tariffs and Trade being succeeded by the World Trade Organization.

Accepted Answer

A) True 
 B)False

Question 16

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 17

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Accepted Answer

A)  Falling tariffs 
B)  Increases in the volume of trade 
C)  Intensifying the worldwide depression 
D)  Efforts to liberalize nontariff trade barriers

Question 18

Figure 6.3 Iraqi Computer Market and Economic Sanctions 
-Consider Figure 6.3.In response to Iraq's armed invasion of neighboring countries,suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to an increase/decrease in the price of computers equal to $____,and an increase/decrease in consumer surplus equal to $____.

Accepted Answer

A)  Increase,$2000,decrease,$40,000 
B)  Increase,$4000,decrease,$60,000 
C)  Decrease,$2000,increase,$40,000 
D)  Decrease,$4000,increase,$60,000

Question 19

Copyrights,trademarks,and patents are used to protect the intellectual property of a nation from foreign imitators.

Accepted Answer

A) True 
 B)False

Question 20

Which policy reflects the notion that if society enjoys gains due to increased efficiency stemming from trade liberalization,some sort of compensation should be provided to those who are temporarily hurt by import competition?

Accepted Answer

A)  Countervailing duties 
B)  Trade adjustment assistance 
C)  Domestic subsidies 
D)  Most-favored-nation standard

Exam 6: Trade Regulations and Industrial Policies

The Uruguay Round of trade negotiations lowered:

The World Trade Organization was established by the ____ of multilateral trade negotiations:

____ attempt to produce a fair and free-trading environment in which there exists a level playing field.

Figure 6.4 Japanese Market for Jetliners -Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose lone producer of jetliners in the world is Boeing and Boeing faces a constant marginal cost of $20 million per jetliner.How much profit will boeing make?

Figure 6.3 Iraqi Computer Market and Economic Sanctions -Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,$____ is not transferred to other sectors of Iraq's economy and represents deadweight loss.

Figure 6.3 Iraqi Computer Market and Economic Sanctions -Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as:

Figure 6.2.Effects of an Export Subsidy -Consider Figure 6.2.With free trade,Mexican consumers purchase calculators,Mexican firms produce calculators,and calculators are imported.

The average tariff rate today on dutiable imports in the United States is approximately:

For the United States,which organization makes loans to foreign buyers of U.S.manufactured goods?

The Uruguay Round of Multilateral Trade Negotiations accomplished all of the following except:

The Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods.To American firms,this represents a:

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

In U.S.trade law,which measure permits the levying of restrictions on fairly traded imports that harm or threaten to harm American manufacturers?

The Uruguay Round of trade negotiations resulted in the General Agreement on Tariffs and Trade being succeeded by the World Trade Organization.

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

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Copyrights,trademarks,and patents are used to protect the intellectual property of a nation from foreign imitators.

Which policy reflects the notion that if society enjoys gains due to increased efficiency stemming from trade liberalization,some sort of compensation should be provided to those who are temporarily hurt by import competition?

Exam 6: Trade Regulations and Industrial Policies

The Uruguay Round of trade negotiations lowered:

The World Trade Organization was established by the ____ of multilateral trade negotiations:

____ attempt to produce a fair and free-trading environment in which there exists a level playing field.

Figure 6.4 Japanese Market for Jetliners -Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose lone producer of jetliners in the world is Boeing and Boeing faces a constant marginal cost of $20 million per jetliner.How much profit will boeing make?

Figure 6.3 Iraqi Computer Market and Economic Sanctions -Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,$____ is not transferred to other sectors of Iraq's economy and represents deadweight loss.

Figure 6.3 Iraqi Computer Market and Economic Sanctions -Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus,the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as:

Figure 6.2.Effects of an Export Subsidy -Consider Figure 6.2.With free trade,Mexican consumers purchase ____ calculators,Mexican firms produce ____ calculators,and ____ calculators are imported.

The average tariff rate today on dutiable imports in the United States is approximately:

For the United States,which organization makes loans to foreign buyers of U.S.manufactured goods?

The Uruguay Round of Multilateral Trade Negotiations accomplished all of the following except:

The Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods.To American firms,this represents a:

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

In U.S.trade law,which measure permits the levying of restrictions on fairly traded imports that harm or threaten to harm American manufacturers?

The Uruguay Round of trade negotiations resulted in the General Agreement on Tariffs and Trade being succeeded by the World Trade Organization.

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

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Copyrights,trademarks,and patents are used to protect the intellectual property of a nation from foreign imitators.

Which policy reflects the notion that if society enjoys gains due to increased efficiency stemming from trade liberalization,some sort of compensation should be provided to those who are temporarily hurt by import competition?

Figure 6.2.Effects of an Export Subsidy -Consider Figure 6.2.With free trade,Mexican consumers purchase calculators,Mexican firms produce calculators,and calculators are imported.