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Page 41
TOPICS:
Antidumping Duties: Protection Against Foreign Dumping
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
95. An antidumping duty levied on imports of foreign-produced steel leads to an increase in consumer surplus in the home
country.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
96. U.S. antidumping duties are intended to neutralize exports to the United States at prices below average total cost or
exports to the United States at prices lower than those charged in the exporter’s home market.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
97. Intellectual property refers to holdings of rare books and pieces of art that are traded on the world market.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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Page 42
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:
Intellectual Property Rights
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
98. Copyrights, trademarks, and patents are used to protect the intellectual property of a nation from foreign imitators.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Intellectual Property Rights
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
99. Under the trade adjustment assistance program, a domestic firm or worker can file for governmental assistance only if
it demonstrates that it suffered economic hardship due to imports of foreign-subsidized goods.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
100. Industrial policy attempts to foster the development of industries that offer long-run comparative disadvantages and
which are insulated from other sectors of the economy.
a.
True
b.
False
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Page 43
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
101. During the post World War II era, the United States has adopted explicit industrial policies similar to those of France
and Japan.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
102. Industrial policies of the U.S. government have included subsidizing particular firms to promote national champions,
nationalizing basic industries, and encouraging cartelization of industries.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
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Page 44
103. The Export-Import Bank provides export-credit subsidies to U.S. producers of agricultural goods.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
104. Major beneficiaries of export-credit subsidies, granted by the Export-Import Bank, have included U.S. producers of
aircraft, telecommunications, and power-generating equipment.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
105. The Commodity Credit Corporation makes available export credit financing for U.S. agricultural exports.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
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Page 45
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
106. As a way of helping U.S. business firms trade in the world market on a more equal terms with their organized foreign
competitors, the U.S. government permits them to form export trade associations and export trading companies.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
107. If the U.S. government pursued a “knowledge-based growth policy,” it would subsidize particular firms to help them
compete in the world economy.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
108. In the post World War II era, the Japanese government formed industrial policies to encourage the development of its
steel, auto, shipbuilding, and machine tool industries.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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Page 46
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 Policy of Japan
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
109. Unlike Japan and the United States, France has refrained from forming explicit industrial policies to enhance the
competitiveness of its national champions.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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 Policy of Japan
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
110. According to the strategic- trade- policy hypothesis, governmental subsidies granted to domestic producers can help
them in capturing economic profits from foreign competitors.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
111. The strategic-trade-policy hypothesis assumes that domestic firms operate under increasing cost conditions as well as
in perfectly competitive markets.
a.
True
b.
False
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Page 47
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
112. According to the strategic-trade-policy hypothesis, government can alter the terms of competition to favor domestic
companies, thus increasing their profits at the expense of their rivals.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
113. The classical theory of comparative advantage assumes that firms operate in imperfectly competitive markets, while
the theory of strategic trade policy assumes that firms operate in perfectly competitive markets.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
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Page 48
114. According to the strategic-trade-policy hypothesis, a subsidy granted to domestic exporters may lead to increased
export profits which more than offset the cost of the subsidy to domestic taxpayers.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
115. By reducing available supplies of a product, an export embargo leads to falling prices in the target nation and
increasing target-nation consumer surplus.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
116. Assume that the United States is the only supplier of grain to China and that it levies a partial export embargo against
China. The embargo leads to increased U.S. welfare if the resulting improvement in the U.S. terms of trade with China
more than offset the costs of the lower export volume to China.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
United States – BUSPROG: Promotion – BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero.
Page 49
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: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
117. Economic sanctions are most effective in pressuring the target country to modify its behavior when the sanctions are
imposed by a small number of countries and when the target country had weak economic ties to the imposing countries
before the sanctions were initiated.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Sanctions
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
118. It is widely recognized that the economic sanctions levied against Iraq in 1990 were a major factor causing Iraq to
withdraw its military forces from Kuwait.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Sanctions
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
119. Assume that Russia has a comparative advantage in vodka. If the United States extends Russia the benefits of the
normal-trade-relations (most favored nation)principle, U.S. consumer surplus decreases in the vodka market.
a.
True
b.
False
ANSWER:
False
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 50
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
120. Assume that the United States imports chemicals from Germany. Trade theory predicts that if the German
government grants an export subsidy to its chemical firms, the overall welfare of the United States will increase.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
121. Concerning industrial policy, the United States has nationalized its major industries in an attempt to promote global
champions.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
122. The Uruguay Round of multilateral trade negotiations succeeded in establishing the World Trade Organization.
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Page 51
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
123. 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.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
124. The World Trade Organization brings into the multilateral trading system manufactured goods and agricultural
products, but not trade in services, intellectual property protection, and investment.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
Copyright Cengage Learning. Powered by Cognero.
Page 52
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
125. The General Agreement on Tariffs and Trade was founded in 1995 as a successor to the World Trade Organization.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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
126. What is the essential idea behind strategic trade policy?
ANSWER:
The essential notion underlying strategic trade policy is imperfect competition.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
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
127. What is the basis for trade adjustment assistance?
ANSWER:
The rationale of trade adjustment assistance is that if society in general enjoys welfare gains
from the increased efficiency stemming from trade liberalization, some sort of compensation
should be provided for those who are temporarily injured by import competition.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Subjective Short Answer
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: Understand
b.
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
128. Has industrial policy contributed significantly to Japan’s economic growth?
ANSWER:
The extent to which industrial policy has contributed to Japan’s economic growth is unclear.
Japan has benefited from a high domestic savings rate, an educated and highly motivated
labor force, good labor management relations, a shift of labor from low-productivity sectors
to high-productivity manufacturing, entrepreneurs willing to assume risks, and the like. These
factors have enhanced Japan’s transformation from a low-technology nation to a high-
technology nation. It is debatable how rapidly this transformation would have occurred in the
absence of an industrial policy. Although Japan has the most visible industrial policy of the
industrial nations, the importance of that policy to Japan should not be exaggerated.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
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 Policy of Japan
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
129. Explain how advocates of strategic trade policy differ from the classical free traders in their treatment of
externalities?
ANSWER:
Advocates of strategic trade policy recognize that the classical argument for free trade
considered externalities at length. The difference, they maintain, is that the classical theory
was based on perfect competition and thus could not appreciate the most likely source of the
externality, whereas modern theories based on imperfect competition can. The externality in
question is the ability of companies to capture the fruits of expensive innovation. Classical
theory based on perfect competition neglected this factor because large fixed costs are
involved in innovation and research and development, and such costs ensure that the number
of competitors in an industry will be small.
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Essay
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
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Page 54
c.
d.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: The role of government
TOPICS:
U.S. Tariff Policies before 1930
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:18 AM
DATE MODIFIED:
7/5/2016 1:20 AM
131. During the 1780s-1790s, the largest source of revenue for the U.S. government came from
a.
the personal income tax
b.
the corporate income tax
c.
the social security tax
d.
import tariffs
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
U.S. Tariff Policies before 1930
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:26 AM
DATE MODIFIED:
7/5/2016 1:28 AM
132. In 1791, Alexander Hamilton presented to Congress his famous “Report on Manufacturers,” which proposed that
young industries of the United States be granted import protection. Hamilton was using the ______ to justify protection
a.
revenue argument
b.
scientific tariff argument
c.
infant industry argument
d.
cheap foreign labor argument
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
U.S. Tariff Policies before 1930
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KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:29 AM
DATE MODIFIED:
7/5/2016 1:32 AM
133. For the United States in the early 1800s
a.
Northern manufacturers favored high tariffs while Southern farmers opposed them
b.
Southern farmers favored high tariffs while northern manufacturers opposed them
c.
High tariffs were favored by Northern manufacturers and Southern farmers
d.
Low tariffs were favored by Northern manufacturers and Southern farmers
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
U.S. Tariff Policies before 1930
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:32 AM
DATE MODIFIED:
7/5/2016 1:37 AM
134. The Smoot-Hawley Tariff Act of 1930
a.
decreased U.S. tariffs to the lowest level since the early 1800s
b.
decreased U.S. tariffs to the lowest level since the late 1800s
c.
increased U.S. tariffs to an average of 53 percent on protected imports
d.
resulted in foreign nations increasing their tariffs on U.S. export
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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: Remember
DATE CREATED:
7/5/2016 1:38 AM
DATE MODIFIED:
7/5/2016 1:48 AM
135. Concerning the tariff policy of the United States, the country imposes
a.
identical tariff rates on products from all countries
b.
lower tariff rates on products from countries with most-favored-nation status
c.
higher tariff rates on products from countries with most-favored-nation status
d.
zero tariff rates on products from all developing countries
ANSWER:
b
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 56
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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: Understand
DATE CREATED:
7/5/2016 1:51 AM
DATE MODIFIED:
7/5/2016 2:02 AM
136. Soon after the United States implemented the Smoot Hawley Tariff Act of 1930
a.
the volume of international trade dramatically increased
b.
employment in the United States rapidly increased
c.
about 25 countries levied import tariffs on U.S, products
d.
the world returned to a policy of free trade
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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: Remember
DATE CREATED:
7/5/2016 2:15 AM
DATE MODIFIED:
7/5/2016 2:19 AM
137. The Reciprocal Trade Agreements Act of 1934 authorized
a.
the President to negotiate bilateral trade agreements with other nations
b.
Congress to negotiate bilateral trade agreements with other nations
c.
the President to increase tariffs without the approval of Congress
d.
Congress to increase tariffs without the approval of the President
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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:
7/5/2016 2:21 AM
DATE MODIFIED:
7/5/2016 2:23 AM
138. The Reciprocal Trade Agreements Act of 1934 allowed the President to lower tariffs by up to _____ of the existing
level, subject to a tariff reductions by our trading partner
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Page 57
a.
15 percent
b.
35 percent
c.
50 percent
d.
75 percent
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: The role of money
TOPICS:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:24 AM
DATE MODIFIED:
7/5/2016 2:26 AM
139. The result of normal trade relations (the most favored nation clause) is
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
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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: Understand
DATE CREATED:
7/5/2016 2:26 AM
DATE MODIFIED:
7/5/2016 2:29 AM
140. Concerning U.S. tariff policy, the Generalized System of Preferences allows
a.
imports from selected developing to receive preferential tariff treatment
b.
imports from all developing countries to receive preferential tariff treatment
c.
U.S. exports to selected developing countries to receive preferential tariff treatment
d.
U.S. exports to all developing countries to receive preferential tariff treatment
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
Copyright Cengage Learning. Powered by Cognero.
Page 58
TOPICS:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:29 AM
DATE MODIFIED:
7/5/2016 2:31 AM
141. Section 301 of the Trade Act of 1974 emphasized
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
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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:
7/5/2016 2:32 AM
DATE MODIFIED:
7/5/2016 2:34 AM
142. The ______ is an international organization that establishes codes of conduct for international trade
a.
International Monetary Fund
b.
World Bank
c.
World Trade Organization
d.
Bank for International Settlements
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
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:
7/5/2016 2:34 AM
DATE MODIFIED:
7/5/2016 2:36 AM
143. The ______ provides a forum for multinational trade negotiations, intended on reducing barriers to trade
a.
United Nations
b.
World Trade Organization
c.
International Monetary Fund
d.
Bank for International Settlements
ANSWER:
b