 |
| 1.
| |
A specific tariff is levied as a fixed charge for unit of an imported good. |
| | A) | True |
| | B) | False |
|
|
|
| 2.
| |
Both government and consumers realize significant gains as a result of tariffs, while domestic producers typically see a negative effect. |
| | A) | True |
| | B) | False |
|
|
|
| 3.
| |
Agriculture tends to be one of the largest beneficiaries of subsidies in most countries. |
| | A) | True |
| | B) | False |
|
|
|
| 4.
| |
The extra profit that producers make when supply is artificially limited by an import quota is referred to as quota rent. |
| | A) | True |
| | B) | False |
|
|
|
| 5.
| |
Countries may impose trade barriers in an effort to protect national security. |
| | A) | True |
| | B) | False |
|
|
|
| 6.
| |
Subsidies, quotas, voluntary export restraints, and antidumping duties are all examples of |
| | A) | foreign policy |
| | B) | tariffs |
| | C) | administrative policies |
| | D) | nontariff barriers |
|
|
|
| 7.
| |
When tariffs are imposed, prices generally |
| | A) | fall |
| | B) | are not affected |
| | C) | rise |
| | D) | stabilize |
|
|
|
| 8.
| |
Ad valorem tariffs are |
| | A) | added onto the price of a product |
| | B) | added to the value of a product |
| | C) | levied as a fixed charge for each unit of an imported good |
| | D) | levied as a proportion of the value of the imported good |
|
|
|
| 9.
| |
A direct restriction on the quantity of some good that may be imported into a country is a(n) ___________. |
| | A) | export quota |
| | B) | subsidy |
| | C) | specific quota |
| | D) | import quota |
|
|
|
| 10.
| |
Import quotas and VERs effectively |
| | A) | lower prices |
| | B) | raise prices |
| | C) | level prices |
| | D) | increase competition |
|
|
|
| 11.
| |
When a domestic industry lacks the capacity to meet demand, import quotas can _____ prices for domestically produced products and ______ prices for imported products. |
| | A) | raise, lower |
| | B) | lower, raise |
| | C) | lower, lower |
| | D) | raise, raise |
|
|
|
| 12.
| |
A requirement that some specific fraction of a good be produced domestically is known as |
| | A) | a local content requirement |
| | B) | an administrative policy |
| | C) | an antidumping policy |
| | D) | a quota rent |
|
|
|
| 13.
| |
If a country requires that all imports of a certain product arrive through a small customs entry point that is both remote and poorly staffed, the country is using _______ as a means of limiting imports. |
| | A) | local content requirements |
| | B) | quota rents |
| | C) | administrative policies |
| | D) | antidumping policies |
|
|
|
| 14.
| |
Antidumping policies are also known as |
| | A) | VERs |
| | B) | countervailing duties |
| | C) | local content requirements |
| | D) | quota rents |
|
|
|
| 15.
| |
If France threatens punitive trade sanctions to force Canada to "play by the rules," France is employing a _____ policy. |
| | A) | retaliation |
| | B) | national security |
| | C) | consumer protection |
| | D) | human rights protection |
|
|
|
| 16.
| |
Granting a country MFN status is part of the U.S.' _______ policy. |
| | A) | retaliation |
| | B) | protection of national security |
| | C) | protection of human rights |
| | D) | protection of infant industries |
|
|
|
| 17.
| |
Many economist criticize ______ for trade intervention arguing that it leads to prolonged inefficiency. |
| | A) | the retaliation policy |
| | B) | strategic trade policy |
| | C) | the infant industry argument |
| | D) | human rights protection |
|
|
|
| 18.
| |
According to Krugman, trade policy designed to retaliate against another country's trade policy |
| | A) | would benefit consumers |
| | B) | would benefit taxpayers |
| | C) | would hurt the initiating nation |
| | D) | would hurt the citizens of both countries |
|
|
|
| 19.
| |
GATT was replaced in 1995 by |
| | A) | the UN |
| | B) | the WTO |
| | C) | the OECD |
| | D) | the Smoot-Hawley Act |
|
|
|
| 20.
| |
The _______, passed in 1930 by the U.S., raised tariff barriers in an effort to protect domestic industries and encourage Americans to buy domestically produced products. |
| | A) | Smoot-Hawley Act |
| | B) | GATT |
| | C) | WTO |
| | D) | Smith-Panker Act |
|
|
|
| 21.
| |
Which of the following was not a goal of the Uruguay Round? |
| | A) | to extend GATT rules to cover trade in services |
| | B) | to write rules governing the protection of intellectual property |
| | C) | to better regulate trade in textiles |
| | D) | to strengthen the GATT monitoring and enforcement mechanisms |
|
|
|
| 22.
| |
____________is an attempt to narrow the gaps in the way intellectual property rights are protected around the world, and to bring them under common international rules. |
| | A) | TRIPS |
| | B) | GATS |
| | C) | The Smoot-Hawley Act |
| | D) | The Foreign Intellectual Property Rights Accord |
|
|
|
| 23.
| |
The WTO's role as a global policeman for trade has so far been |
| | A) | successful |
| | B) | moderately unsuccessful |
| | C) | quite ineffective |
| | D) | completely disorganized |
|
|
|
| 24.
| |
In 2003, OECD countries spent more than ________ subsidizing agriculture. |
| | A) | $100 million |
| | B) | $200 million |
| | C) | $300 billion |
| | D) | $400 million |
|
|
|
| 25.
| |
The Doha Round is focusing on all of the following issues except |
| | A) | cutting tariffs on industrial goods and services |
| | B) | phasing out subsidies to agricultural producers |
| | C) | reducing barriers to cross-border investment |
| | D) | encouraging the establishment of anti-dumping laws |
|
|
.