Copyright Cengage Learning. Powered by Cognero.
Page 1
1. The World Trade Organization was established by the ____ of multilateral trade negotiations:
a.
Kennedy Round
b.
Tokyo Round
c.
Uruguay Round
d.
Clinton Round
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
World Trade Organization
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
2. Under U.S. commercial policy, the escape clause results in:
a.
Temporary quotas granted to firms injured by import competition
b.
Tariffs that offset export subsidies granted to foreign producers
c.
Tax advantages extended to minority-owned exporting firms
d.
Duties which offset commercial dumping on the part of foreign firms
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Safeguards (The Escape Clause): Emergency Protection from Imports
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
3. Adjustment assistance is sometimes used to assist:
a.
b.
c.
d.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 2
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Safeguards (The Escape Clause): Emergency Protection from Imports
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
4. 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:
a.
Specific subsidy
b.
Ad valorem subsidy
c.
Domestic subsidy
d.
Export subsidy
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
5. The Smoot-Hawley Tariff Act of 1930 has generally been associated with:
a.
Falling tariffs
b.
Increases in the volume of trade
c.
Intensifying the worldwide depression
d.
Efforts to liberalize nontariff trade barriers
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
US Tariff Policies Before 1930
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
6. A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is known as a
Copyright Cengage Learning. Powered by Cognero.
Page 3
(an):
a.
International dumping policy
b.
Trade adjustment assistance policy
c.
Most-favored-nation policy
d.
Beggar-thy-neighbor policy
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
7. Under U.S. commercial policy, which clause permits the modification of a trade liberalization agreement on a
temporary basis if serious injury occurs to domestic producers as a result of the agreement?
a.
Adjustment assistance clause
b.
Escape clause
c.
Most-favored-nation clause
d.
Reciprocal-trade clause
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
8. 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?
a.
Countervailing duties
b.
Trade adjustment assistance
c.
Domestic subsidies
d.
Most-favored-nation standard
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 4
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Trade Adjustment Assistance
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
9. The Uruguay Round of Multilateral Trade Negotiations accomplished all of the following except:
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
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
10. The General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have resulted in:
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
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 5
11. For the United States, which organization makes loans to foreign buyers of U.S. manufactured goods?
a.
Export-Import Bank
b.
Domestic International Sales Corporation
c.
Organization for Economic Cooperation and Development
d.
Commodity Credit Corporation
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
12. The high point of U.S. protection culminated with the passage of the:
a.
Smoot-Hawley Act of 1930
b.
General Agreements on Tariffs and Trade in 1947
c.
Trade Reduction Act of 1962
d.
Adjustment Assistance Act of 1970
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Smoot-Hawley Act
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
13. Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain over domestic
producers because of foreign:
a.
Tariffs
b.
Subsidies
c.
Quotas
d.
Buy-national policies
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
Copyright Cengage Learning. Powered by Cognero.
Page 6
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Countervailing Duties: Protection Against Foreign Export Subsidies
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
14. Trade theory suggests that the United States would gain from a subsidy provided by Japan to its calculator producers if
the gains to American consumers of calculators more than offset the losses to American calculator producers. This occurs
as long as the United States:
a.
Is a net importer of calculators
b.
Is a net exporter of calculators
c.
Has an absolute advantage in calculator production
d.
Has a comparative advantage in calculator production
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Strategic Trade Policy
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
15. Under the original provisions of the Reciprocal Trade Agreements Act, the president of the United States was
authorized to cut tariffs up to:
a.
10 percent
b.
50 percent
c.
75 percent
d.
100 percent
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 7
DATE MODIFIED:
6/22/2016 3:20 PM
16. The U.S. “trade-remedy laws” could establish all of the following except:
a.
Import tariffs to protect U.S. firms seriously injured by foreign competition
b.
Countervailing duties which neutralize foreign export subsidies
c.
Antidumping duties which protect U.S. firms from imports sold at less-than-fair-value
d.
Economic sanctions levied against hostile nations
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Safeguards (The Escape Clause): Emergency Protection from Imports
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
17. The principle of normal trade relations (most-favored-nation)treatment was established with the passage of the:
a.
Fordney-McCumber Act of 1922
b.
Smoot-Hawley Act of 1930
c.
Reciprocal Trade Agreements Act of 1934
d.
Trade Act of 1974
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
18. Throughout the post-World War II era, the importance of tariffs as a trade barrier has:
a.
Increased
b.
Decreased
c.
Remained the same
d.
None of the above
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 8
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
19. As a way of helping American firms trade in the world market, U.S. trade law provides antitrust exemptions for
horizontal combinations of American firms engaged solely in export trade. Such firms are permitted to form:
a.
Export trade associations
b.
Domestic international sales corporations
c.
Export-import banks
d.
Commodity sales corporations
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
20. ____ attempt to produce a fair and free-trading environment in which there exists a level playing field.
a.
Trade-remedy laws
b.
Industrial policies
c.
Strategic trade policies
d.
Economic sanctions
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 9
21. 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:
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
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
22. In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed
invasion of Afghanistan. The embargo was mainly resisted by:
a.
U.S. grain consumers and producers of bread
b.
U.S. farmers and grain companies
c.
Grain producers in foreign countries
d.
Grain consumers in foreign countries
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
23. Export embargoes induce greater losses in consumer surplus for the target country:
a.
The lesser its initial dependence on foreign produced goods
b.
The more elastic the target country’s demand schedule
c.
The greater the available output from alternative suppliers
d.
The more inelastic the target country’s supply schedule
ANSWER:
d
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 10
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
24. Suppose the president lowers tariffs on radios as the result of negotiations under the trade agreements program. Radio
producers in the United States can appeal under the:
a.
Escape clause if rising imports substantially injure the U.S. radio industry
b.
Escape clause if rising unemployment occurs even though imports remain unchanged
c.
Infant industry clause if rising imports cause unemployment to rise among U.S. radio workers
d.
Infant industry clause if rising imports result in losses for U.S. radio companies
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Safeguards (The Escape Clause): Emergency Protection from Imports
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
25. During the past four decades:
a.
Nontariff barriers (NTBs) and tariffs have increased in importance
b.
NTBs and tariffs have decreased in importance
c.
NTBs have increased and tariffs have decreased in importance
d.
NTBs have decreased and tariffs have increased in importance
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 11
DATE MODIFIED:
6/22/2016 3:20 PM
26. The strongest political pressure for a trade policy that results in higher protectionism comes from:
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
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
27. The Uruguay Round of trade negotiations was primarily concerned with:
a.
Import tariffs
b.
Export tariffs
c.
Economic sanctions
d.
Nontariff trade barriers
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
28. The Uruguay Round of trade negotiations lowered:
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
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
Copyright Cengage Learning. Powered by Cognero.
Page 12
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
29. The average tariff rate today on dutiable imports in the United States is approximately:
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
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Reflective thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
US Tariff Policies Before 1930
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
30. Those who argue in favor of import protection generally give the impression that such restricted trade will:
a.
Decrease the level of national security
b.
Provide benefits to some particular industry
c.
Provide benefits to the entire nation
d.
Not yield welfare losses for the nation
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
US Tariff Policies Before 1930
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 13
31. In 1990 the United States and its allies imposed trade embargoes on exports/imports to/from Iraq in response to its
invasion of Kuwait. The embargoes would induce smaller losses in Iraq’s consumer surplus the:
a.
Lesser its initial dependence on foreign products
b.
Less elastic Iraq’s demand schedule
c.
Lesser the available output from alternative suppliers
d.
More inelastic Iraq’s supply schedule
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
32. In U.S. trade law, Section 301 cases involve accusations of:
a.
International dumping by U.S. companies
b.
Full-cost pricing by U.S. companies
c.
Unfair trade practices by foreign nations
d.
Trade embargoes by foreign nations
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Section 301: Protection Against Unfair Trading Practices
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
33. Industrial policy attempts to fulfill all of the following objectives except:
a.
Improving the infrastructure for an industry
b.
Easing transitions for workers in declining industries
c.
Supporting troubled industries if the difficulty is temporary
d.
Fostering industries which offer long-run comparative disadvantage
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
Copyright Cengage Learning. Powered by Cognero.
Page 14
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Industrial Policies of the United States
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
34. Countervailing duties may be imposed:
a.
In response to a foreign export subsidy
b.
In response to a foreign antidumping tariff
c.
To promote exports of domestic companies
d.
To promote imports of domestic consumers
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
35. The World Trade Organization provides for all of the following except:
a.
The usage of the normal-trade-relation (most-favored-nation) clause
b.
Assistance in the settlement of trade disagreements
c.
Multilateral tariff reductions
d.
Bilateral tariff reductions
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
World Trade Organization
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
36. In U.S. trade law, which measure permits the levying of restrictions on fairly traded imports that harm or threaten to
Copyright Cengage Learning. Powered by Cognero.
Page 15
harm American manufacturers?
a.
Antidumping duty
b.
Countervailing duty
c.
National security clause
d.
Escape clause
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Safeguards (The Escape Clause): Emergency Protection from Imports
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
37. Which international organization stipulates procedures for the settlement of international trade disputes?
a.
World Trade Organization
b.
World Bank
c.
International Monetary Fund
d.
Organization of Economic Development
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
World Trade Organization
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
38. The most recent round of multilateral trade negotiations is the:
a.
Kennedy Round
b.
Tokyo Round
c.
Doha Round
d.
Geneva Round
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 16
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
General Agreement on Tariffs and Trade
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Assume Boeing Inc. (of the United States) and Airbus Industrie (of Europe) rival for monopoly profits in the Canadian
aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus
39. Referring to Figure 6.1, assume that Boeing is the first to enter the Canadian market. Without a governmental subsidy,
the firm maximizes profits by selling ____ aircraft at a price of $____, and realizes profits totaling $____.
a.
4, $12 million, $16 million
b.
4, $16 million, $12 million
c.
8, $12 million, $16 million
d.
8, $16 million, $12 million
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 17
DATE MODIFIED:
6/22/2016 3:20 PM
40. Consider Figure 6.1. At the monopoly price as established by Boeing, Canadian consumers realize $____ of consumer
surplus from the availability of aircraft.
a.
$4 million
b.
$8 million
c.
$12 million
d.
$16 million
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
41. Consider Figure 6.1. Suppose the European government provides Airbus a subsidy of $4 million on each aircraft
manufactured, and that the subsidy convinces Boeing to exit the Canadian market. As the monopoly seller, Airbus
maximizes profit by selling ____ aircraft at a price of $____, and realizes profits totaling $____.
a.
6, $10 million, $36 million
b.
6, $12 million, $24 million
c.
12, $10 million, $36 million
d.
12, $12 million, $24 million
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
42. Referring to Figure 6.1, the total cost of the Airbus subsidy to the European taxpayer equals:
a.
$16 million
Copyright Cengage Learning. Powered by Cognero.
Page 18
b.
$20 million
c.
$24 million
d.
$28 million
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
43. Referring to Figure 6.1, the Airbus subsidy leads to a (an) increase/decrease in Canadian consumer surplus of $____,
as compared to the consumer surplus that existed in the absence of a subsidy.
a.
Increase of $8 million
b.
Increase of $10 million
c.
Decrease of $8 million
d.
Decrease of $10 million
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
44. Consider Figure 6.1. For Europe as a whole (Airbus and European taxpayers), the subsidy leads to a (an)
increase/decrease in net revenues of $____.
a.
Increase of $12 million
b.
Increase of $16 million
c.
Decrease of $12 million
d.
Decrease of $16 million
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
Copyright Cengage Learning. Powered by Cognero.
Page 19
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.1
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Exploring Further
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable influence the South
Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy
45. Consider Figure 6.2. With free trade, Mexican consumers purchase ____ calculators, Mexican firms produce ____
calculators, and ____ calculators are imported.
a.
10, 4, 6
b.
10, 6, 4
c.
10, 8, 2
d.
10, 2, 8
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.2
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero.
Page 20
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Antidumping Duties: Protection Against Foreign Dumping
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
46. Consider Figure 6.2. With free trade, Mexicans attain $____ of consumer surplus from the availability of calculators,
while Mexican producer surplus equals $____.
a.
$400, $200
b.
$200, $400
c.
$500, $180
d.
$500, $240
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.2
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Antidumping Duties: Protection Against Foreign Dumping
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
47. Consider Figure 6.2. To help its firms further penetrate export markets, suppose the South Korean government
provides them a production subsidy of $20 per calculator. With the subsidy, South Korean firms charge a price of $____
and export ____ calculators to Mexico.
a.
$40, 8
b.
$40, 10
c.
$20, 8
d.
$20, 10
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.2
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Antidumping Duties: Protection Against Foreign Dumping
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM