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Mixed Quiz
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1

When a tariff is levied as a proportion of the value of an imported good, the tariff is __________ tariff.
A)an ad valorem
B)a specific
C)a value-based
D)typically a very low
E)levied by the exporting nation
2

Which of the following is not a true statement about tariffs?
A)a specific tariff is a tariff levied as a fixed charge for each unit of good imported
B)tariffs hurt consumers
C)tariffs are beneficial to producers
D)tariffs increase the overall efficiency of the world economy
E)prices typically rise as a result of tariffs
3

All of the following are types of subsidies except
A)cash grants
B)low-interest loans
C)tax breaks
D)government equity participation in domestic firms
E)taxes levied on imports
4

A quota on trade imposed by the exporting country at the request of the import country's government is
A)an import quota
B)a voluntary export restraint
C)a quota rent
D)a subsidy
E)an export quota
5

Japan's policy of checking every tulip bulb imported into the country by cutting it in half is an example of
A)local content regulations
B)an administrative trade policy
C)an antidumping policy
D)a voluntary export restraint
E)an import quota
6

Governments may intervene in international trade for all of the following political reasons except
A)protecting jobs and industries
B)to avoid administering the Helms-Burton Act
C)national security
D)retaliation
E)to further foreign policy objectives
7

The WTO differs from GATT in that the WTO
A)encompasses GATT and agreements on services and intellectual property
B)will not oversee agricultural subsidies
C)does not operate on the basis of consensus
D)allows member countries to block adoption of arbitration reports
E)has a smaller membership
8

As a result of high tariffs and subsidies on agricultural products all of the following are true except
A)consumers pay higher prices for agricultural products
B)the volume of agricultural trade is increased
C)the government buys surplus production
D)there is overproduction of goods that are subsidized
E)removing tariffs and subsidies could significantly increase global economic growth
9

The _________ obliges WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.
A)GATT
B)Smoot-Hawley Act
C)D'Amato Agreement
D)TRIPS Agreement
E)Doha Talks
10

The Doha talks of the WTO will focus on all of the following issues except
A)cutting tariffs on industrial goods
B)phasing out subsidies to agricultural producers
C)reducing barriers to cross-border investment
D)limiting the use of antidumping laws
E)implementing the use of VERs on services
11

Tariffs are unambiguously pro-producer and anti-consumer.
A)True.
B)False.
12

A tax levied on imports is a tariff.
A)True.
B)False.
13

In most countries, agriculture is one of the largest beneficiaries of subsidies.
A)True.
B)False.
14

Domestic producers are negatively affected by import quotas and VERs.
A)True.
B)False.
15

Bureaucratic rules designed to make it difficult for imports to enter a country are known as local content requirements.
A)True.
B)False.
16

The GATT recognizes the infant industry argument as a legitimate reason for protectionism.
A)True.
B)False.
17

Strategic trade policy underlies government support of Airbus.
A)True.
B)False.
18

The D'Amato Act was passed in 1930 and erected a wall of tariff barriers against imports into the United States.
A)True.
B)False.
19

In its early years, the GATT struggled to lower trade barriers, but more recently, the organization has seen considerable success.
A)True.
B)False.
20

Bilateral voluntary restraints are not subject to GATT agreements.
A)True.
B)False.





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