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
99. What are some of the growth strategies that have been employed by the developing nations? How successful are these
strategies?
ANSWER:
Besides attempting to stabilize commodity prices, developing nations have promoted internal
industrialization through policies of import substitution and export promotion. Countries
emphasizing export promotion have tended to realize higher rates of economic growth than
countries emphasizing import-substitution policies.
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:
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
100. Describe the flying-geese pattern of economic growth? What countries have pursued this strategy?
ANSWER:
It is widely recognized that East Asian economies have followed the flying-geese pattern of
growth. This pattern of growth occurs when countries gradually move up in technological
development by following in the pattern of countries ahead of them in the development
process. For example, Malaysia and Taiwan take over leadership in apparel and textiles from
Japan as Japan moves into higher-technology sectors of automotive and electronic products.
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:
East Asian Economies
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
101. Recent trade patterns indicate that most of world trade occurs
a.
among advanced (industrial) countries
b.
among developing countries
c.
between regional trade blocks, such as NAFTA and the EU
d.
between developing countries and advanced countries
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Page 42
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
TOPICS:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 1:50 AM
DATE MODIFIED:
7/5/2016 1:52 AM
102. Import substitution is an example of
a.
an inward-oriented growth strategy
b.
an outward-oriented growth strategy
c.
the principle of absolute advantage
d.
export led growth
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:53 AM
DATE MODIFIED:
7/5/2016 1:56 AM
103. Outward-oriented growth strategies place main emphasis on
a.
the allocation of resources according to the principle of absolute advantage
b.
the allocation of resources according to the principle of comparative advantage
c.
the principle of strategic trade policy
d.
the principle of industrial policy
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:56 AM
DATE MODIFIED:
7/5/2016 1:58 AM
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Page 43
104. Developing countries tend to export ______ because many of them have large endowments of ______.
a.
primary products, natural resources
b.
primary products, capital
c.
capital goods, advanced technology
d.
capital goods, investment funds
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:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 1:58 AM
DATE MODIFIED:
7/5/2016 2:00 AM
105. Import substitution emphasizes decreasing reliance on international trade by
a.
developing import-competing industries
b.
adopting free trade policies
c.
subsidizing efficient exporting industries
d.
reducing import tariffs on labor-intensive goods
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
TOPICS:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:00 AM
DATE MODIFIED:
7/5/2016 2:02 AM
106. Developing countries have often argued that their terms of trade have worsened because
a.
their import prices have declined relative to their export prices
b.
their import prices have risen relative to their export prices
c.
their import prices and export prices have increased
d.
their import prices and export prices have decreased
ANSWER:
b
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
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Page 44
NATIONAL STANDARDS:
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: Remember
DATE CREATED:
7/5/2016 2:02 AM
DATE MODIFIED:
7/5/2016 2:04 AM
107. Comparing per-capita incomes of many developing countries and industrial countries, we tend to see
a.
lower per-capita incomes in industrial countries
b.
lower per-capita incomes in developing countries
c.
identical per-capita incomes in developing countries
ANSWER:
b
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
TOPICS:
Introduction
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:04 AM
DATE MODIFIED:
7/5/2016 2:06 AM
108. Comparing life expectancy and adult literacy of developing countries and industrial countries, we tend to see
a.
lower life expectancy and higher adult literacy in developing countries
b.
higher life expectancy and lower adult literacy in developing countries
c.
higher life expectancy and higher adult literacy in developing countries
d.
lower life expectancy and lower adult literacy in industrial countries
ANSWER:
d
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Reading and interpreting g – DISC: Reading and interpreting
graphs
TOPICS:
Introduction
KEYWORDS:
BLOOM’S: Analyze
DATE CREATED:
7/5/2016 2:06 AM
DATE MODIFIED:
7/5/2016 2:08 AM
109. The trade problems of the developing countries have included all of the following except
a.
unstable export markets
b.
worsening terms of trade
c.
rising prices of primary-product exports
d.
limited export access to the markets of industrial countries
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Page 45
ANSWER:
c
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
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:08 AM
DATE MODIFIED:
7/5/2016 2:11 AM
110. Developing countries sometimes encounter the tariff-escalation policies of advanced countries. This means that
advanced countries
a.
impose higher tariffs on processed products than on primary products
b.
impose higher tariffs on primary products than on processed products
c.
impose identical tariffs on primary products and processed products
d.
allow free trade on primary products and processed products
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
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:11 AM
DATE MODIFIED:
7/5/2016 2:13 AM
111. For most developing countries, the majority of their exports consists of
a.
capital-intensive agricultural products
b.
capital intensive manufactured products
c.
financial and legal services
d.
primary products
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:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:14 AM
Copyright Cengage Learning. Powered by Cognero.
Page 46
DATE MODIFIED:
7/5/2016 2:16 AM
112. The developing countries tend to reside in all of the following regions except
a.
North America
b.
Latin America
c.
Africa
d.
the Middle East
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:
Introduction
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:19 AM
DATE MODIFIED:
7/5/2016 2:20 AM
113. The advanced (industrial) countries of the world tend to be characterized by all of the following except
a.
relatively high per-capita incomes
b.
relatively long life expectancies
c.
relatively high levels of adult literacy
d.
relatively high reliance on exports of primary products
ANSWER:
d
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
TOPICS:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:21 AM
DATE MODIFIED:
7/5/2016 2:22 AM
114. Of the manufactured goods exported by developing countries, most of them are ______ and include ______ of
technology in their production
a.
labor intensive, modest amounts
b.
labor intensive, large amounts
c.
capital intensive, modest amounts
d.
capital intensive, large amounts
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
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Page 47
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:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:23 AM
DATE MODIFIED:
7/5/2016 2:25 AM
115. Developing countries include all of the following except
a.
El Salvador
b.
Vietnam
c.
Canada
d.
India
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:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:25 AM
DATE MODIFIED:
7/5/2016 2:26 AM
116. For Saudi Arabia, oil exports constitute about ______ of its export revenue
a.
40 percent
b.
55 percent
c.
70 percent
d.
90 percent
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:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:27 AM
DATE MODIFIED:
7/5/2016 2:28 AM
117. Economists note that instability of prices of primary products (tin, coffee, copper) is mainly caused by
a.
low price elasticity of demand and low price elasticity of supply
b.
low price elasticity of demand and high price elasticity of supply
Copyright Cengage Learning. Powered by Cognero.
Page 48
c.
high price elasticity of demand and low price elasticity of supply
d.
high price elasticity of demand and high price elasticity of supply
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: Elasticity
United States – PA – DISC: Supply and demand
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:28 AM
DATE MODIFIED:
7/5/2016 2:32 AM
118. Developing countries often argue that advanced countries protect their farmers with
a.
low import tariffs and high export subsidies
b.
high import tariffs and high export subsidies
c.
high import tariffs and low export subsidies
d.
low import tariffs and low export subsidies
ANSWER:
b
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
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:32 AM
DATE MODIFIED:
7/5/2016 2:34 AM
119. A sweatshop includes all of the following except
a.
poor and unsafe working conditions
b.
high wages and benefits for workers
c.
unreasonable hours for workers
d.
child labor
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: Labor markets
TOPICS:
Trade Problems of the Developing Nations
Copyright Cengage Learning. Powered by Cognero.
Page 49
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:34 AM
DATE MODIFIED:
7/5/2016 2:36 AM
120. Efforts to stabilize export prices and revenues include all of the following except
a.
production and export controls
b.
buffer stocks
c.
multilateral contracts
d.
all of the above
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: Productivity and growth
TOPICS:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:36 AM
DATE MODIFIED:
7/5/2016 3:35 AM
121. The ability of OPEC nations to operate as a successful cartel tend to decrease as
a.
the number of members of the cartel decline
b.
cost of production differences of the cartel members rise
c.
the demand for oil rises in the world market
d.
the availability of substitutes for OPEC oil falls
ANSWER:
b
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
TOPICS:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:38 AM
DATE MODIFIED:
7/5/2016 2:41 AM
122. The mission of the ______ is to make loans to developing countries aimed toward poverty reduction and economic
development, including schools, hospitals, roads, and bridges
a.
Bank for International Settlements
b.
International Monetary Fund
c.
World Trade Organization
d.
World Bank
ANSWER:
d
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 50
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:
Aiding the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:41 AM
DATE MODIFIED:
7/5/2016 2:44 AM
123. The mission of the ______ is to provide financial assistance to developing countries facing balance of payments
deficits and financial crisis
a.
Bank for International Settlements
b.
International Monetary Fund
c.
World Trade Organization
d.
World Bank
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:
Aiding the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:45 AM
DATE MODIFIED:
7/5/2016 2:47 AM
124. Challenges for China’s economy include
a.
the privatization of China’s industries
b.
rising labor costs that detract from the competitiveness of China’s exporting companies
c.
the deterioration of China’s environment
d.
all of the above
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: Measuring the economy
TOPICS:
China’s Great Leap Forward
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 2:47 AM
DATE MODIFIED:
7/5/2016 2:49 AM
125. Developing countries that emphasize production in raw materials and agricultural goods may realize a long-run
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Page 51
decline in their international terms of trade as the result of
a.
inelastic demand for these products in advanced countries
b.
sizable increases in the amount of these products supplied to the world market
c.
weak demand for these products in advanced countries
d.
all of the above
ANSWER:
d
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
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:49 AM
DATE MODIFIED:
7/5/2016 2:52 AM
126. Developing countries often argue that their
a.
efforts to industrialize are discouraged
b.
export prices and revenues are very unstable
c.
terms of trade have deteriorated over time
d.
all of the above
ANSWER:
d
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
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:52 AM
DATE MODIFIED:
7/5/2016 2:54 AM
127. Which of the following has resulted in economic instability of developing countries?
a.
a fall in the prices of natural resources of developing countries
b.
a rise in the prices of natural resources of developing countries
c.
a rise in the labor productivity of developing countries
d.
a rise in the rate of saving of developing countries
ANSWER:
a
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
Copyright Cengage Learning. Powered by Cognero.
Page 52
STATE STANDARDS:
United States – PA – DISC: Measuring the economy
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:55 AM
DATE MODIFIED:
7/5/2016 3:39 AM
128. Developing countries tend to have all of the following except
a.
high rates of population growth
b.
low levels of per-capita income
c.
high levels of labor productivity
d.
a high percentage of the labor force in agriculture
ANSWER:
c
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: Measuring the economy
TOPICS:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 2:58 AM
DATE MODIFIED:
7/5/2016 2:59 AM
129. A factor that discourages economic growth in developing countries is
a.
an increase in the level of literacy among adults
b.
a limited supply of capital goods and sophisticated technology
c.
a shortage of land
d.
excessive amounts of public infrastructure
ANSWER:
b
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: Productivity and growth
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:00 AM
DATE MODIFIED:
7/5/2016 3:01 AM
130. Many developing countries contend that they face worsening terms of trade because the prices they receive for
exports have increased while the prices they pay for imports have decreased.
a.
True
b.
False
ANSWER:
False
POINTS:
1
Copyright Cengage Learning. Powered by Cognero.
Page 53
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:03 AM
DATE MODIFIED:
7/5/2016 3:04 AM
131. Evidence shows that the largest amount of trade occurs between developing countries.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
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:
Developing Nation Trade Characteristics
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 3:04 AM
DATE MODIFIED:
7/5/2016 3:06 AM
132. Import substitution decreases reliance on international trade by fostering export-competing industries.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:06 AM
DATE MODIFIED:
7/5/2016 3:07 AM
133. Along the “ladder of economic development,” Canada and Germany would be located along the higher steps while
Ecuador and Venezuela would be located along the lower steps.
a.
True
b.
False
ANSWER:
True
POINTS:
1
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Page 54
DIFFICULTY:
Challenging
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: Measuring the economy
TOPICS:
Tensions between Developing Nations and Advanced Nations
KEYWORDS:
BLOOM’S: Apply
DATE CREATED:
7/5/2016 3:08 AM
DATE MODIFIED:
7/5/2016 3:09 AM
134. A sweatshop is a factory that has poor and unsafe working conditions, unreasonable hours for workers, low wages
and benefits, and child labor.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Labor markets
TOPICS:
Trade Problems of the Developing Nations
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
7/5/2016 3:09 AM
DATE MODIFIED:
7/5/2016 3:10 AM
135. The Fair Trade Movement attempts to help poor coffee growers in developing countries by providing them higher
prices for their coffee beans.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
STATE STANDARDS:
United States – PA – DISC: Productivity and growth
TOPICS:
Stabilizing Primary-Product Prices
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:11 AM
DATE MODIFIED:
7/5/2016 3:11 AM
136. The recent technological advances in oil production, such as hydraulic fracturing and horizontal drilling, have
threatened the market share and profitability of the OPEC nations.
a.
True
b.
False
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Page 55
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
The OPEC Oil Cartel
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:12 AM
DATE MODIFIED:
7/5/2016 3:14 AM
137. According to the Generalized System of Preferences of the United States, exports from developing countries face
higher import tariff rates than exports from industrialized countries.
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Aiding the Developing Nations
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:14 AM
DATE MODIFIED:
7/5/2016 3:15 AM
138. Import substitution policies seek to promote industrialization by establishing barriers to foreign goods to encourage
domestic production.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:16 AM
DATE MODIFIED:
7/5/2016 3:18 AM
139. Import substitution policies have been highly successful in fostering employment in new, emerging industries since
these policies prevent the import of foreign capital goods.
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Page 56
a.
True
b.
False
ANSWER:
False
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:18 AM
DATE MODIFIED:
7/5/2016 3:20 AM
140. Export promotion policies attempt to encourage production of goods for sale overseas, which fosters additional
export revenues; import substitution policies attempt to replace imported goods with domestic production.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
True / False
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:
Economic Growth Strategies: Import Substitution versus Export-Led Growth
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
7/5/2016 3:23 AM
DATE MODIFIED:
7/5/2016 3:27 AM
141. Import substitution policy tends to be anti-trade while outward looking development is pro-trade.
a.
True
b.
False
ANSWER:
True
POINTS:
1
DIFFICULTY:
Challenging
QUESTION TYPE:
True / False
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Analytic Reflective Thi – BUSPROG: Reflective Thinking
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: Apply
DATE CREATED:
7/5/2016 3:25 AM
DATE MODIFIED:
7/5/2016 3:26 AM
142. The European Union is primarily intended to permit:
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Page 57
a.
Countries to adopt scientific tariffs on imports
b.
An agricultural commodity cartel within the group
c.
The adoption of export tariffs for revenue purposes
d.
Free movement of resources and products among member nations
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
143. Which of the following represents the stage where economic integration is most complete?
a.
Economic union
b.
Customs union
c.
Monetary union
d.
Common market
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
144. Which of the following represents the stage where economic integration is least complete?
a.
Free trade area
b.
Monetary union
c.
Common market
d.
Customs union
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
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Page 58
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
145. Customs union theory reasons that the formation of a customs union will decrease members’ real welfare when the:
a.
Trade diversion effect exceeds the trade creation effect
b.
Trade production effect exceeds the trade consumption effect
c.
Trade consumption effect exceeds the trade production effect
d.
Trade creation effect exceeds the trade diversion effect
ANSWER:
a
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
146. Which economic integration scheme is solely intended to abolish trade restrictions among member countries, while
setting up common tariffs against nonmembers?
a.
Economic union
b.
Common market
c.
Free trade area
d.
Customs union
ANSWER:
d
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
147. By 1992 the European Union had become a full-fledged:
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Page 59
a.
Economic union
b.
Monetary union
c.
Common market
d.
Fiscal union
ANSWER:
c
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
148. Which device has the European Union used to equalize farm-product import prices with politically determined
European Union prices, regardless of shifts in world prices?
a.
Variable levies
b.
Import quotas
c.
Import subsidies
d.
Domestic content regulations
ANSWER:
a
POINTS:
1
DIFFICULTY:
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The European Union
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
149. Which trade instrument has the European Union used to insulate its producers and consumers of agricultural goods
from the impact of changing demand and supply conditions in the rest of the world?
a.
Domestic content regulations
b.
Variable import levies
c.
Voluntary export quotas
d.
Orderly marketing agreements
ANSWER:
b
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
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Page 60
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
The European Union
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
150. Assume that the formation of a customs union turns out to include the lowest-cost world producer of the product in
question. Which effect could not occur for the participating countries?
a.
Trade creation-production effect
b.
Trade creation-consumption effect
c.
Trade diversion
d.
Scale economies and competition
ANSWER:
c
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Effects of a Regional Trading Arrangement
KEYWORDS:
BLOOM’S: Understand
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM
151. Which organization of nations permits free trade among its members in industrial goods, while each member
maintains freedom in its trade policies toward non-member countries?
a.
European Union
b.
Benelux
c.
Council for Mutual Economic Assistance
d.
North American Free Trade Association
ANSWER:
d
POINTS:
1
DIFFICULTY:
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
NATIONAL STANDARDS:
United States – BUSPROG: Promotion – BUSPROG: Analytic
United States – BUSPROG: Reflective Thinking
STATE STANDARDS:
United States – PA – DISC: International trade and fi – DISC: International trade and finance
TOPICS:
Types of Regional Trading Arrangements
KEYWORDS:
BLOOM’S: Remember
DATE CREATED:
6/22/2016 3:21 PM
DATE MODIFIED:
6/22/2016 3:21 PM