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Page 21
TOPICS:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
47. All of the following nations except ____ have recently utilized export-led (outward oriented) growth policies.
a.
Hong Kong
b.
South Korea
c.
Argentina
d.
Singapore
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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
48. The characteristics that have underlaid the economic success of the “high-performing Asian Economies” have
included all of the following except:
a.
High rates of domestic investment
b.
Diseconomies of scale occurring at low output levels
c.
Large endowments of human capital
d.
High levels of labor productivity
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
49. The development of countries like South Korea and Singapore has been underlaid by all of the following except:
a.
b.
c.
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Page 22
d.
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
50. For most developing countries:
a.
Productivity is high among domestic workers
b.
Population-growth and illiteracy rates are low
c.
Saving and investment levels are high
d.
Agricultural goods and raw materials constitute much of domestic output
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:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
51. East Asian economies have performed well by
a.
Obtaining foreign technology
b.
Remaining open to international trade
c.
Investing in their people
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:
East Asian Economies
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Page 23
KEYWORDS:
BLOOM’S: Knowledge
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
52. East Asian economies started enacting export-push strategies
a.
By late 1950s and 1960s
b.
Immediately after World War II
c.
In the late 1980s
d.
In the early 2000s
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
53. Prior to the formation of the Organization of Petroleum Exporting Countries, individual oil producing nations,
a.
Operated like sellers in a competitive market
b.
Behaved like individual sellers in a monopoly market
c.
Had considerable control over the price of oil
d.
Both b and c.
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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
54. A key factor underlying the instability of primary product prices and export receipts of developing nations is the
a.
Low price elasticity of the demand of primary products
b.
High price elasticity of supply of primary products
c.
High price elasticity of demand of primary products
d.
None of the above
ANSWER:
a
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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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Figure 7.4 Global Market for Tin
55. Consider the global market for tin represented by figure 7.4. Initially equilibrium is at point A with a market price of
$3.50 per pound and 50,000 pounds. In ordr to keep tin price relatively stable an International Tin Agreement has set a
price floor of $3.27 and a ceiling of $4.02. As the demand for tin increases to D1 how will the buffer-stock manager need
to respond?
a.
buy 10,000 pounds of tin
b.
buy 20,000 pounds of tin
c.
sell 10,000 pounds of tin
d.
sell 20,000 pounds of tin
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 7.4
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Analyze
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Page 25
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Figure 7.5 Global Market for Tin
56. Figure 7.5 represents the global market for tin. The initial equilibrium price and quantity is at point A. As a result of
an International Tin Agreement a price range of $3.27 – $4.02 is set. As the supply of tin increases from S0 to S1, the
buffer-stock manager will need to
a.
buy 10,000 pounds of tin
b.
buy 20,000 pounds of tin
c.
sell 10,000 pounds of tin
d.
sell 20,000 pounds of tin
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
PREFACE NAME:
Figure 7.5
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
57. The developing nations are most of those in Africa, Asia, North America, and Western Europe.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
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Page 26
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:
Developing Nations Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
58. Most developing-nation exports go to industrial nations while most developing-nation imports originate in industrial
nations.
a.
True
b.
False
ANSWER:
True
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:
Developing Nations Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
59. The majority of developing-nation exports are primary products such as agricultural goods and raw materials; of the
manufactured goods exported by developing nations, most are labor-intensive goods.
a.
True
b.
False
ANSWER:
True
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:
Developing Nations Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
60. Developing nations overwhelmingly acknowledge that they have benefited from international trade according to the
principle of comparative advantage.
a.
True
b.
False
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Page 27
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:
Developing Nations Trade Characteristics
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
61. Among the economic problems facing developing countries have been low dependence on primary-product exports,
unstable export markets, and worsening terms of trade.
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:
Developing Nations Trade Characteristics
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
62. For developing countries, a key factor underlying the instability of primary-product prices and export receipts is the
high price elasticity of demand for products such as tin and copper.
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:
Stabilizing Primary-Product Prices
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 28
63. Empirical research indicates that the demand and supply schedules for most primary products are relatively inelastic to
changes in price.
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 Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
64. If the demand for coffee is price inelastic, an increase in the supply of coffee leads to falling prices and rising sales
revenues.
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 Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
65. Not only do changes in demand induce relatively wide fluctuations in price when supply is inelastic, but changes in
supply induce relatively wide fluctuations in price when demand is inelastic.
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
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TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
66. Developing countries have complained that because their commodity terms of trade has deteriorated in recent decades,
they should receive preferential tariff treatment from industrialized countries.
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 Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
67. To promote stability in commodity markets, International Commodity Agreements have utilized production and
export controls, buffer stocks, and multilateral contracts.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
68. During periods of falling demand for coffee, an International Commodity Agreement could offset downward pressure
on price by implementing policies to increase the supply of coffee.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
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Page 30
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
69. To prevent the market price of tin from rising above the target price, the manager of a buffer stock will purchase
excess supplies of tin from the market.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
70. To prevent the market price of tin from falling below the target price, the manager of a buffer stock would purchase
any excess supply of tin that exists at the target price.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
71. Prolonged defense of a price ceiling tends to increase the supply of a commodity held by a buffer stock manager, thus
putting downward pressure on price.
a.
True
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Page 31
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
72. Rather than conduct massive stabilization operations, buffer stock officials will periodically revise target prices should
they move out of line with long-term price trends.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
73. A multilateral contract stipulates the maximum price at which importing nations will purchase guaranteed quantities
from producing nations and the minimum price at which producing nations will sell guaranteed amounts to importing
nations.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
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Page 32
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
74. It is widely agreed that import-substitution policies have been a main contributor to above-average growth rates in
developing 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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
75. Under the Generalized System of Preferences program, the major industrial countries agree to temporarily reduce
tariffs on designated imports from other industrial 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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
76. The “newly industrializing countries” of East Asia have emphasized the implementation of import-substitution
policies to insulate their industries from international competition.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
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Page 33
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
77. In recent decades, the East Asian “newly industrializing countries” have pursued export-led growth (outward
orientation) as an industrialization strategy.
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
78. The purpose of a cartel is to support prices higher than would occur under more competitive conditions, thus
increasing the profits of cartel members.
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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
79. A cartel tends to be most successful in maximizing the profits of its members when there are a large number of
producers in the cartel and these producers’ cost and demand conditions greatly differ from each other.
a.
True
b.
False
ANSWER:
False
Copyright Cengage Learning. Powered by Cognero.
Page 34
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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
80. When cartel members agree to restrict output to increase the price of their product, a single member of the cartel has
an economic incentive to violate the agreement by increasing its output so as to increase profits.
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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
81. Developing countries have often felt that it is easier to protect their manufacturers, via import-substitution policies,
against foreign competitors than to force industrial nations to reduce trade restrictions on products exported by developing
countries.
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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
Copyright Cengage Learning. Powered by Cognero.
Page 35
82. Import-substitution policies are supported by the fact that many developing countries have small domestic markets and
thus their producers enjoy the benefits of diseconomies of small-scale production.
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 Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
83. Export-led growth industrialization suffers a major problem: it depends on the willingness and ability of foreign
nations to absorb the goods exported by the country pursuing such a policy.
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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
84. The so-called Four Tigers include Australia, South Korea, Taiwan, and Hong Kong.
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:
East Asian Economies
Copyright Cengage Learning. Powered by Cognero.
Page 36
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
85. By the 1990s, China had departed from a capitalistic economy and shifted to a Soviet-type economy encompassing
small-scale, labor-intensive industry.
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:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
86. During the late 1980s and early 1990s, China dismantled much of its centrally-planned economy and permitted free
enterprise to replace it.
a.
True
b.
False
ANSWER:
True
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:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
87. In its transition toward capitalism, by the 1990s China permitted free enterprise as well as democracy for its people.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
Copyright Cengage Learning. Powered by Cognero.
Page 37
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:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:20 PM
DATE MODIFIED:
6/22/2016 3:20 PM
88. Most of China’s manufactured exports have constituted labor-intensive goods.
a.
True
b.
False
ANSWER:
True
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:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
89. In 1999 the United States revoked the normal-trade-relations (most-favored-nation) status it provided China in
retaliation for China’s suppression of human rights.
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:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
90. A multilateral contract specifies the maximum price at which exporting countries agree to sell a product and the
minimum price at which importing countries agree to buy a product.
a.
True
b.
False
ANSWER:
True
Copyright Cengage Learning. Powered by Cognero.
Page 38
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
91. As a profit-maximizing cartel, the Organization of Petroleum Exporting Countries would produce a greater output and
charge a lower price than what would occur in a competitive 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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
92. The success of buffer stocks is limited by the fact that stockpiles of a product may be exhausted after prolonged sales,
while funds may be exhausted after prolonged purchases.
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:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
Copyright Cengage Learning. Powered by Cognero.
Page 39
93. The United Nation Conference on Trade and Development in 1964 was successful in convincing developing countries
to switch from export-led industrialization to import-substitution industrialization.
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 Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
94. Under the Generalized System of Preferences program, the industrialized countries agree to maintain lower tariffs on
imports of natural resources and higher tariffs on imports of manufactured 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:
Economic Growth Strategies: Import Substitution Versus Export Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
95. The replacement of imports of one nation with imports of another nation is known as “import substitution.”
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 Growth Strategies: Import Substitution Versus Export Led Growth
Copyright Cengage Learning. Powered by Cognero.
Page 40
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
96. During periods of weak demand, the Organization of Petroleum Countries has implemented production (export)
quotas to ensure that excess oil supplies be kept off the 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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
97. What are some major trade problems faced by developing nations?
ANSWER:
Trade problems include lack of diversification of economies, unstable export markets,
declining terms of trade over time, and lack of access to markets of advanced countries.
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 Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
98. Are economic downturns helpful to cartels?
ANSWER:
No they are generally problematic for cartels. As market sales dwindle in a weakening
economy, profits fall. Cartel members may conclude that they can escape serious decreases in
profits by reducing prices, in expectation of gaining sales at the expense of other cartel
members.
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