Question 1

When Mexico became a part of NAFTA,along with Canada and the United States,it:

Accepted Answer

A)  Eliminated tariffs against Canada and the United States but maintained them against nonmembers 
B)  Eliminated tariffs against Canada,the United States,and all nonmember countries 
C)  Increased tariffs against Canada the United States,and all nonmember countries 
D)  Increased tariffs against Canada and the United States,but did not change them against nonmember countries 
A)  Eliminated tariffs against Canada and the United States but maintained them against nonmembers 
B)  Eliminated tariffs against Canada,the United States,and all nonmember countries 
C)  Increased tariffs against Canada the United States,and all nonmember countries 
D)  Increased tariffs against Canada and the United States,but did not change them against nonmember countries

Question 2

What is meant by economic integration?

Accepted Answer

The term refers to the process

Question 3

Trade creation would occur if Canada and the United States form a free-trade area,and Canadians then import less steel from the United States while importing more steel from Japan.

Accepted Answer

A) True 
 B)False

Question 4

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively.
Figure 8.2.Portugal's Steel Market
  
-Consider Figure 8.2.With free trade Portugal will

Accepted Answer

A)  produce 10 tons of steel,consume 35 tons of steel and import 25 tons of steel 
B)  produce 15 tons of steel,consume 30 tons of steel and import 15 tons of steel 
C)  produce 0 tons of steel,consume 35 tons of steel and import 35 tons of steel 
D)  produce 15 tons of steel,consume 35 tons of steel and import 20 tons of steel 
A)  produce 10 tons of steel,consume 35 tons of steel and import 25 tons of steel 
B)  produce 15 tons of steel,consume 30 tons of steel and import 15 tons of steel 
C)  produce 0 tons of steel,consume 35 tons of steel and import 35 tons of steel 
D)  produce 15 tons of steel,consume 35 tons of steel and import 20 tons of steel

Question 5

Economic integration is the process of eliminating restrictions on international trade,payments,and factor mobility.

Accepted Answer

A) True 
 B)False

Question 6

A long-run goal of the NAFTA members is to integrate their economies into an economic and monetary union,with common fiscal policies and monetary policies.

Accepted Answer

A) True 
 B)False

Question 7

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

Accepted Answer

A)  High domestic interest rates 
B)  R&D and product innovation 
C)  Education and on-the-job training 
D)  High levels of saving and investment 
A)  High domestic interest rates 
B)  R&D and product innovation 
C)  Education and on-the-job training 
D)  High levels of saving and investment

Question 8

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Accepted Answer

A)  Is inelastic with respect to price changes 
B)  Is elastic with respect to price changes 
C)  Will increase in response to a price increase 
D)  Will not change in response to a price change 
A)  Is inelastic with respect to price changes 
B)  Is elastic with respect to price changes 
C)  Will increase in response to a price increase 
D)  Will not change in response to a price change

Question 9

Evidence shows that the largest amount of trade occurs between developing countries.

Accepted Answer

A) True 
 B)False

Question 10

East Asian economies started enacting export-push strategies

Accepted Answer

A)  By late 1950s and 1960s 
B)  Immediately after World War II 
C)  In the late 1980s 
D)  In the early 2000s 
A)  By late 1950s and 1960s 
B)  Immediately after World War II 
C)  In the late 1980s 
D)  In the early 2000s

Question 11

A main disadvantage of the European Monetary Union is that:

Accepted Answer

A)  Each member country loses the use of monetary policy as to tool to combat recession 
B)  There is a high degree of labor mobility among the member countries 
C)  Prices are highly flexible in response to changing economic conditions 
D)  Wages are highly flexible in response to changing economic conditions 
A)  Each member country loses the use of monetary policy as to tool to combat recession 
B)  There is a high degree of labor mobility among the member countries 
C)  Prices are highly flexible in response to changing economic conditions 
D)  Wages are highly flexible in response to changing economic conditions

Question 12

To protect its farmers from foreign competition,the European Union has utilized variable import levies and export subsidies.

Accepted Answer

A) True 
 B)False

Question 13

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation) as an industrialization strategy.

Accepted Answer

A) True 
 B)False

Question 14

Which device has the International Tin Agreement utilized as a way of stabilizing tin prices?

Accepted Answer

A)  Multilateral contracts 
B)  Export subsidies 
C)  Buffer stocks 
D)  Export tariffs 
A)  Multilateral contracts 
B)  Export subsidies 
C)  Buffer stocks 
D)  Export tariffs

Question 15

If the United States and Canada implement a regional trading agreement that results in the two countries eliminating trade barriers between themselves while maintaining separate trade barriers against nonmember countries,they have formed a

Accepted Answer

A)  common market 
B)  customs union 
C)  free trade area 
D)  economic union 
A)  common market 
B)  customs union 
C)  free trade area 
D)  economic union

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Import substitution policy tends to be anti-trade while outward looking development is pro-trade.

Accepted Answer

A) True 
 B)False

Question 18

The purpose of a cartel is to support prices higher than would occur under more competitive conditions,thus increasing the profits of cartel members.

Accepted Answer

A) True 
 B)False

Question 19

In 1989 Canada and the United States agreed to implement a (an) ____ over a ten year period.

Accepted Answer

A)  Customs union 
B)  Common market 
C)  Free trade area 
D)  Economic union 
A)  Customs union 
B)  Common market 
C)  Free trade area 
D)  Economic union

Question 20

In terms of static economic analysis,if a customs union results in a large amount of trade creation relative to trade diversion,world welfare

Accepted Answer

A)  increases 
B)  decreases 
C)  does not change 
A)  increases 
B)  decreases 
C)  does not change

When Mexico became a part of NAFTA,along with Canada and the United States,it:

What is meant by economic integration?

Trade creation would occur if Canada and the United States form a free-trade area,and Canadians then import less steel from the United States while importing more steel from Japan.

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively. Figure 8.2.Portugal's Steel Market -Consider Figure 8.2.With free trade Portugal will

Economic integration is the process of eliminating restrictions on international trade,payments,and factor mobility.

A long-run goal of the NAFTA members is to integrate their economies into an economic and monetary union,with common fiscal policies and monetary policies.

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Evidence shows that the largest amount of trade occurs between developing countries.

East Asian economies started enacting export-push strategies

A main disadvantage of the European Monetary Union is that:

To protect its farmers from foreign competition,the European Union has utilized variable import levies and export subsidies.

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation) as an industrialization strategy.

Which device has the International Tin Agreement utilized as a way of stabilizing tin prices?

If the United States and Canada implement a regional trading agreement that results in the two countries eliminating trade barriers between themselves while maintaining separate trade barriers against nonmember countries,they have formed a

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.

Import substitution policy tends to be anti-trade while outward looking development is pro-trade.

The purpose of a cartel is to support prices higher than would occur under more competitive conditions,thus increasing the profits of cartel members.

In 1989 Canada and the United States agreed to implement a (an) ____ over a ten year period.

In terms of static economic analysis,if a customs union results in a large amount of trade creation relative to trade diversion,world welfare

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Exchange Rate Systems and Currency Crises

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 7: Trade Policies for the Developing Nations

When Mexico became a part of NAFTA,along with Canada and the United States,it:

What is meant by economic integration?

Trade creation would occur if Canada and the United States form a free-trade area,and Canadians then import less steel from the United States while importing more steel from Japan.

The figure below depicts the steel market for Portugal,a small nation that is unable to affect the world price.Assume that Germany and France can supply steel to Portugal at a price of $200 and $300 respectively. Figure 8.2.Portugal's Steel Market -Consider Figure 8.2.With free trade Portugal will

Economic integration is the process of eliminating restrictions on international trade,payments,and factor mobility.

A long-run goal of the NAFTA members is to integrate their economies into an economic and monetary union,with common fiscal policies and monetary policies.

The development of countries like South Korea and Singapore has been underlaid by all of the following except:

If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue,they believe that the demand for bauxite:

Evidence shows that the largest amount of trade occurs between developing countries.

East Asian economies started enacting export-push strategies

A main disadvantage of the European Monetary Union is that:

To protect its farmers from foreign competition,the European Union has utilized variable import levies and export subsidies.

In recent decades,the East Asian "newly industrializing countries" have pursued export-led growth (outward orientation) as an industrialization strategy.

Which device has the International Tin Agreement utilized as a way of stabilizing tin prices?

If the United States and Canada implement a regional trading agreement that results in the two countries eliminating trade barriers between themselves while maintaining separate trade barriers against nonmember countries,they have formed a

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.

Import substitution policy tends to be anti-trade while outward looking development is pro-trade.

The purpose of a cartel is to support prices higher than would occur under more competitive conditions,thus increasing the profits of cartel members.

In 1989 Canada and the United States agreed to implement a (an) ____ over a ten year period.

In terms of static economic analysis,if a customs union results in a large amount of trade creation relative to trade diversion,world welfare

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Tariffs

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance-of-payments

Foreign Exchange

Exchange Rate Determination

Mechanisms of International Adjustment

Exchange Rate Adjustments and the Balance-of-payments

Exchange Rate Systems and Currency Crises

Macroeconomic Policy in an Open-economy

International Banking: Reserves, Debt, and Risk

Filters