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DATE MODIFIED:
6/22/2016 3:20 PM
48. Consider Figure 6.2. The South Korean subsidy helps/hurts Mexican manufacturers, since their producer surplus
rises/falls by $____.
a.
Helps, rises, $60
b.
Helps, rises, $100
c.
Hurts, falls, $60
d.
Hurts, falls, $100
ANSWER:
d
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
49. Consider Figure 6.2. For Mexico’s producers and consumers as a whole, the South Korean subsidy leads to a:
a.
$120 welfare gain
b.
$320 welfare gain
c.
$120 welfare loss
d.
$320 welfare loss
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
DATE MODIFIED:
6/22/2016 3:20 PM
50. Consider Figure 6.2. As a result of the South Korean subsidy, Mexicans find their consumer surplus:
a.
b.
c.
d.
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Page 22
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
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
Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions
51. Consider Figure 6.3. With free trade, Iraq purchases ____ computers at a price of $____, and realizes $____ of
consumer surplus from the availability of computers.
a.
30, $3,000, $25,000
b.
30, $3,000, $35,000
c.
30, $3,000, $45,000
d.
30, $3,000, $55,000
ANSWER:
c
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
Copyright Cengage Learning. Powered by Cognero.
Page 23
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
52. 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 $____.
a.
Increase, $2000, decrease, $40,000
b.
Increase, $4000, decrease, $60,000
c.
Decrease, $2000, increase, $40,000
d.
Decrease, $4000, increase, $60,000
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
53. 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.
a.
$5000
b.
$10,000
c.
$15,000
d.
$20,000
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
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DATE MODIFIED:
6/22/2016 3:20 PM
54. 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:
a.
Tax revenue
b.
Export revenue
c.
Producer surplus
d.
Consumer surplus
ANSWER:
b
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
55. Consider Figure 6.3. For the United States, the export quota results in a (an):
a.
Improvement in its terms of trade with Iraq
b.
Increase in its export revenue
c.
Increase in domestic computer prices
d.
Decrease in domestic consumer surplus
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.3
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
56. The implicit industrial policies of the U.S. government have included:
a.
Formulating industry-specific economic policies designed to promote national champions
b.
Nationalizing basic industries such as steel and autos
c.
Encouraging cartelization of aircraft and aluminum manufacturers
d.
Improving the setting for industry such as communications and infrastructure
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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: Reading and interpreting g – DISC: Reading and interpreting
graphs
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
57. Economic sanctions are most effective in causing the target nation to modify its behavior when the:
a.
Target nation had negligible economic relationships with the imposing nation prior to the sanctions
b.
People of the target nation have weak cultural ties to the people of the imposing nation
c.
Sanctions are levied by a large number of nations
d.
Target government is supported by the majority of its people
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: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Economic Sanctions
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
58. In 1995 the ____ was established to administer the new global trade rules agreed in the Uruguay Round of multilateral
trade negotiations.
a.
World Trade Organization
b.
Organization for Economic Cooperation and Development
c.
General Agreement on Tariffs and Trade
d.
United Nations
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
Copyright Cengage Learning. Powered by Cognero.
Page 26
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
World Trade Organization
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
59. In 1995 the General Agreement on Tariffs and Trade was replaced by the ____.
a.
Agency for International Development
b.
Organization for Economic Cooperation and Development
c.
United Nations Center for Trade and Development
d.
World Trade Organization
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: Reading and interpreting g – DISC: Reading and interpreting
graphs
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
60. The most important determinants of sanctions include
a.
Cultural factors including nationalistic attitudes
b.
Strength of political opposition in the targeting nation
c.
The number of nations imposing sanctions
d.
All of the above
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:
Economic Sanctions
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
61. Industrial policies
a.
Require formal explicit efforts by governments
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Page 27
b.
May be implicit
c.
Have never been used by the U.S. government
d.
Both a and b
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
62. Trade adjustment assistance policies
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
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:
Trade Promotion Authority (Fast Track Authority)
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
63. The United States
a.
Has been a heavy user of antidumping laws to protect domestic producers
b.
Has rarely used antidumping laws to protect domestic producers
c.
Has targeted antidumping action against China, Japan, Canada, Italy, and Germany
d.
Both a and c
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
Copyright Cengage Learning. Powered by Cognero.
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STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Antidumping Duties: Protection Against Foreign Dumping
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Figure 6.4 Japanese Market for Jetliners
64. 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?
a.
$20 million, 23
b.
$20 million, 46
c.
$30 million, 46
d.
$30 million, 23
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.4
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
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KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
65. 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?
a.
0
b.
$150 million
c.
$230 million
d.
$250 million
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.4
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
66. 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 consumer surplus will the
Japanese airlines who purchase the jetliners earn from their transactions with Boeing?
a.
0
b.
$115 million
c.
$230 million
d.
$250 million
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.4
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
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Figure 6.5 Japanese Market for Jetliners
67. Consider the Japanese market for jetliners as depicted in Figure 6.5. Suppose lone producer of jetliners in the world is
Boeing and Boeing faces a constant marginal cost of $20 million per jetliner but now a European manufacturer, Airbus,
begins production. Airbus faces the same marginal cost as Boeing but the European government provides Airbus with a
subsidy of $8 million per jetliner produced. As a result of the competition, Boeing leaves the Japanese market leaving
Airbus as a monopoly. How many jetlines will airbus produce and what price will they sell them for?
a.
23, $30 million
b.
32, $26 million
c.
23, $26 million
d.
32, $30 million
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.5
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
68. Consider the Japanese market for jetliners as depicted in Figure 6.5. Suppose lone producer of jetliners in the world is
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Boeing and Boeing faces a constant marginal cost of $20 million per jetliner but now a European manufacturer, Airbus,
begins production. Airbus faces the same marginal cost as Boeing but the European government provides Airbus with a
subsidy of $8 million per jetliner produced. As a result of the competition, Boeing leaves the Japanese market leaving
Airbus as a monopoly. How much profit will Airbus earn?
a.
$230 million
b.
$350 million
c.
$416 million
d.
$450 million
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.5
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
69. Consider the Japanese market for jetliners as depicted in Figure 6.5. Suppose lone producer of jetliners in the world is
Boeing and Boeing faces a constant marginal cost of $20 million per jetliner but now a European manufacturer, Airbus,
begins production. Airbus faces the same marginal cost as Boeing but the European government provides Airbus with a
subsidy of $8 million per jetliner produced. As a result of the competition, Boeing leaves the Japanese market leaving
Airbus as a monopoly. As a result of the entery of the subsidized producer what will happen to the consumer surplus
gained by Japanese airlines from buying jetliners?
a.
decrease by $109 million
b.
nothing
c.
increase by $50 million
d.
increase by $109 million
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 6.5
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
Copyright Cengage Learning. Powered by Cognero.
Page 32
70. The high point of U.S. protectionism occurred with the passage of the Kennedy Act in the 1960s.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
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:
Smoot-Hawley Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
71. With the passage of the Smoot-Hawley Act in 1930, U.S. average tariffs were raised to over 50 percent on protected
imports.
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:
Smoot-Hawley Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
72. Proponents of the Smoot-Hawley Act of 1930 viewed it as a means of combating domestic unemployment.
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:
Smoot-Hawley Act
KEYWORDS:
BLOOM’S: Remember
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DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
73. It is generally agreed that the Smoot-Hawley Act of 1930 led to improvements in U.S. exports and an overall increase
in U.S. output and employment.
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:
Smoot-Hawley Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
74. According to the Reciprocal Trade Agreements Act of 1934, the President could lower tariffs by up to 10 percent of
the existing level without congressional approval.
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:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
75. Under the normal-trade-relations (most-favored-nation) principle, two nations agree to apply tariffs to each other at
rates as low as those applied to any other nation.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
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Page 34
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
76. According to the normal-trade-relations (most-favored-nation) principle, if the United States extends MFN treatment
to China and then grants a low tariff on imports of shirts from South Korea, the United States is obligated to provide the
identical low-tariff on imports of shirts from 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
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
77. U.S. tariffs on imports from countries issued normal-trade-relations (most-favored-nation) status are often three or
four times as high as those on comparable imports from nations not receiving that status.
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:
Reciprocal Trade Agreements Act
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
78. According to the General Agreement on Tariffs and Trade and its successor, the World Trade Organization, only
bilateral trade negotiations can take place between a country and its trading partners.
a.
True
b.
False
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Page 35
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
79. Members of the General Agreement on Tariffs and Trade and its successor, the World Trade Organization, agree to
the principle of nondiscrimination in trade and the reduction of trade barriers by multilateral 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:
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
80. The Uruguay Round of trade negotiations resulted in the General Agreement on Tariffs and Trade being succeeded by
the World Trade Organization.
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:
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 36
81. The only members of the General Agreement on Tariffs and Trade and its successor, the World Trade Organization,
are developing countries rather than developed countries.
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
82. According to the fast-track provision of U.S. trade law, once the President has completed trade negotiations, their
outcome is subject to a vote (without amendment) in Congress within 90 legislative days of submission.
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:
Trade Promotion Authority
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
83. The fast-track provision of U.S. trade law has the affect of speeding up the timetable during which the President
negotiates trade agreements with foreign governments.
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
Copyright Cengage Learning. Powered by Cognero.
Page 37
TOPICS:
Trade Promotion Authority (Fast Track Authority)
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
84. The main focus of the Uruguay Round of multilateral trade negotiations was on tariff barriers rather than nontariff
trade barriers.
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
85. Although the Uruguay Round of multilateral trade negotiations succeeded in reducing nontariff trade barriers, it could
not achieve reductions in tariff trade barriers.
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
86. Among the codes of conduct addressed at the Tokyo Round of multilateral trade negotiations were customs valuation,
product standards, subsidies and countervailing duties, government procurement policies, and import licensing
procedures.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
Copyright Cengage Learning. Powered by Cognero.
Page 38
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
87. Under the government procurement policy of the World Trade Organization, federal-state-local governments are
prevented from discriminating in favor of the products of domestic suppliers on contracts valued at $1 million and more.
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
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
88. Unlike the Tokyo Round of multilateral trade negotiations, the Uruguay Round addressed the issues of intellectual
property protection, trade barriers in services, and agricultural subsidies.
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:
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
89. The U.S. trade-remedy laws attempt to redress hardships for U.S. firms resulting from actions and policies of foreign
firms and governments.
a.
True
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Page 39
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:
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
90. According to U.S. trade law, the escape clause provides relief to U.S. firms due to unfair foreign competition.
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:
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
91. According to the escape clause, temporary trade restrictions may be imposed in industries where domestic producers
are substantially being harmed by surging imports.
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:
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
Copyright Cengage Learning. Powered by Cognero.
Page 40
92. The purpose of “countervailing duties,” as levied by the domestic government, is to neutralize import tariffs imposed
by foreign governments.
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
93. Under the provisions of the World Trade Organization, Canada would have the right to impose countervailing duties
on imports of South Korean steel when the South Korean government provides export subsidies to its steelmakers.
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: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
94. Economic theory suggests that if France is a net importer of automobiles, whose production is subsidized by the
Korean government, the overall welfare of France decreases because of the Korean subsidy.
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