Question 1

Established in 1995,the World Trade Organization took charge of administering the new global trade rules agreed in the Uruguay Round of multilateral trade negotiations.

Accepted Answer

A) True 
 B)False

Question 2

For the United States,the trade adjustment assistance program is founded on the rationale that if society enjoys welfare gains from the increased efficiency stemming from trade liberalization,compensation should be provided for those who are injured by import competition.

Accepted Answer

A) True 
 B)False

Question 3

In U.S.trade law,Section 301 cases involve accusations of:

Accepted Answer

A)   International dumping by U.S.companies
B)   Full-cost pricing by U.S.companies
C)   Unfair trade practices by foreign nations
D)   Trade embargoes by foreign nationsE) A) and D)
F) A) and C)

Question 4

The most recent round of multilateral trade negotiations is the:

Accepted Answer

A)   Kennedy Round
B)   Tokyo Round
C)   Doha Round
D)   Geneva RoundE) All of the above
F) A) and C)

Question 5

Figure 6.4Japanese Market for Jetliners
 
-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?

Accepted Answer

A)   0
B)   $150 million
C)   $230 million
D)   $250 millionE) None of the above
F) B) and C)

Question 6

Those who argue in favor of import protection generally give the impression that such restricted trade will:

Accepted Answer

A)   Decrease the level of national security
B)   Provide benefits to some particular industry
C)   Provide benefits to the entire nation
D)   Not yield welfare losses for the nationE) A) and C)
F) C) and D)

Question 7

The high point of U.S.protectionism occurred with the passage of the Kennedy Act in the 1960s.

Accepted Answer

A) True 
 B)False

Question 8

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Accepted Answer

A)   Falling tariffs
B)   Increases in the volume of trade
C)   Intensifying the worldwide depression
D)   Efforts to liberalize nontariff trade barriersE) B) and D)
F) None of the above

Question 9

In the post World War II era,the Japanese government formed industrial policies to encourage the development of its steel,auto,shipbuilding,and machine tool industries.

Accepted Answer

A) True 
 B)False

Question 10

In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed invasion of Afghanistan.The embargo was mainly resisted by:

Accepted Answer

A)   U.S.grain consumers and producers of bread
B)   U.S.farmers and grain companies
C)   Grain producers in foreign countries
D)   Grain consumers in foreign countriesE) A) and C)
F) B) and C)

Question 11

The high point of U.S.protection culminated with the passage of the:

Accepted Answer

A)   Smoot-Hawley Act of 1930
B)   General Agreements on Tariffs and Trade in 1947
C)   Trade Reduction Act of 1962
D)   Adjustment Assistance Act of 1970E) C) and D)
F) A) and B)

Question 12

The United States

Accepted Answer

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 cE) None of the above
F) A) and D)

Question 13

The primary objective of the World Trade Organization is to

Accepted Answer

A)   maximize tariff revenue for developing-country governments
B)   promote bilateral trade negotiations among nations
C)   liberalize international trade among member countries
D)   increase the protection of firms and workers against foreign competitionE) A) and B)
F) B) and C)

Question 14

The ______ provides a forum for multinational trade negotiations,intended on reducing barriers to trade

Accepted Answer

A)   United Nations
B)   World Trade Organization
C)   International Monetary Fund
D)   Bank for International SettlementsE) All of the above
F) None of the above

Question 15

Figure 6.5 Japanese Market for Jetliners
 
-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?

Accepted Answer

A)   23,$30 million
B)   32,$26 million
C)   23,$26 million
D)   32,$30 millionE) A) and B)
F) B) and D)

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Industrial policies

Accepted Answer

A)   Require formal explicit efforts by governments
B)   May be implicit
C)   Have never been used by the U.S.government
D)   Both a and bE) B) and D)
F) B) and C)

Question 18

One of the achievements of the Uruguay Round was the formation of the World Trade Organization.

Accepted Answer

A) True 
 B)False

Question 19

Economic sanctions are most effective in pressuring the target country to modify its behavior when the sanctions are imposed by a small number of countries and when the target country had weak economic ties to the imposing countries before the sanctions were initiated.

Accepted Answer

A) True 
 B)False

Question 20

During the 1780s-1790s,the largest source of revenue for the U.S.government came from

Accepted Answer

A)   the personal income tax
B)   the corporate income tax
C)   the social security tax
D)   import tariffsE) All of the above
F) B) and C)

Exam 6: Trade Regulations and Industrial Policies

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.

Correct Answer
verified

Economic sanctions are most effective in pressuring the target country to modify its behavior when the sanctions are imposed by a small number of countries and when the target country had weak economic ties to the imposing countries before the sanctions were initiated.

Correct Answer
verified

The primary objective of the World Trade Organization is to

Correct Answer
verified

The high point of U.S.protection culminated with the passage of the:

Correct Answer
verified

The United States

Correct Answer
verified

The most recent round of multilateral trade negotiations is the:

Correct Answer
verified

Established in 1995,the World Trade Organization took charge of administering the new global trade rules agreed in the Uruguay Round of multilateral trade negotiations.

Correct Answer
verified

During the 1780s-1790s,the largest source of revenue for the U.S.government came from

Correct Answer
verified

Figure 6.4Japanese Market for Jetliners -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?

Correct Answer
verified

In the post World War II era,the Japanese government formed industrial policies to encourage the development of its steel,auto,shipbuilding,and machine tool industries.

Correct Answer
verified

Industrial policies

Correct Answer
verified

Those who argue in favor of import protection generally give the impression that such restricted trade will:

Correct Answer
verified

In U.S.trade law,Section 301 cases involve accusations of:

Correct Answer
verified

The high point of U.S.protectionism occurred with the passage of the Kennedy Act in the 1960s.

Correct Answer
verified

The ______ provides a forum for multinational trade negotiations,intended on reducing barriers to trade

Correct Answer
verified

For the United States,the trade adjustment assistance program is founded on the rationale that if society enjoys welfare gains from the increased efficiency stemming from trade liberalization,compensation should be provided for those who are injured by import competition.

Correct Answer
verified

One of the achievements of the Uruguay Round was the formation of the World Trade Organization.

Correct Answer
verified

Correct Answer
verified

In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed invasion of Afghanistan.The embargo was mainly resisted by:

Correct Answer
verified

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Correct Answer
verified

Exam 6: Trade Regulations and Industrial Policies

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.

Correct AnswerverifiedShow Answer

Economic sanctions are most effective in pressuring the target country to modify its behavior when the sanctions are imposed by a small number of countries and when the target country had weak economic ties to the imposing countries before the sanctions were initiated.

Correct AnswerverifiedShow Answer

The primary objective of the World Trade Organization is to

Correct AnswerverifiedShow Answer

The high point of U.S.protection culminated with the passage of the:

Correct AnswerverifiedShow Answer

The United States

Correct AnswerverifiedShow Answer

The most recent round of multilateral trade negotiations is the:

Correct AnswerverifiedShow Answer

Established in 1995,the World Trade Organization took charge of administering the new global trade rules agreed in the Uruguay Round of multilateral trade negotiations.

Correct AnswerverifiedShow Answer

During the 1780s-1790s,the largest source of revenue for the U.S.government came from

Correct AnswerverifiedShow Answer

Figure 6.4Japanese Market for Jetliners -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?

Correct AnswerverifiedShow Answer

In the post World War II era,the Japanese government formed industrial policies to encourage the development of its steel,auto,shipbuilding,and machine tool industries.

Correct AnswerverifiedShow Answer

Industrial policies

Correct AnswerverifiedShow Answer

Those who argue in favor of import protection generally give the impression that such restricted trade will:

Correct AnswerverifiedShow Answer

In U.S.trade law,Section 301 cases involve accusations of:

Correct AnswerverifiedShow Answer

The high point of U.S.protectionism occurred with the passage of the Kennedy Act in the 1960s.

Correct AnswerverifiedShow Answer

The ______ provides a forum for multinational trade negotiations,intended on reducing barriers to trade

Correct AnswerverifiedShow Answer

For the United States,the trade adjustment assistance program is founded on the rationale that if society enjoys welfare gains from the increased efficiency stemming from trade liberalization,compensation should be provided for those who are injured by import competition.

Correct AnswerverifiedShow Answer

One of the achievements of the Uruguay Round was the formation of the World Trade Organization.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 1980 the United States announced an embargo on grain exports to the Soviet Union in response to the Soviet armed invasion of Afghanistan.The embargo was mainly resisted by:

Correct AnswerverifiedShow Answer

The Smoot-Hawley Tariff Act of 1930 has generally been associated with:

Correct AnswerverifiedShow Answer

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