Question 1

For most developing countries:

Accepted Answer

A)  Productivity is high among domestic workers 
B)  Population-growth and illiteracy rates are low 
C)  Saving and investment levels are high 
D)  Agricultural goods and raw materials constitute much of domestic output 
A)  Productivity is high among domestic workers 
B)  Population-growth and illiteracy rates are low 
C)  Saving and investment levels are high 
D)  Agricultural goods and raw materials constitute much of domestic output

Question 2

Under the variable levy system of the European Union,EU farmers are protected against import competition by tariffs that vary inversely with the world price.

Accepted Answer

A) True 
 B)False

Question 3

As of 2016,18 members of the European Union had adopted further economic integration than the other members by

Accepted Answer

A)  abolishing tariff and nontariff barriers to trade among each other 
B)  adopting uniform policies on the movement of factors of production 
C)  establishing common trade policies against countries that were not members of the EU 
D)  implementing a common currency and a common monetary policy 
A)  abolishing tariff and nontariff barriers to trade among each other 
B)  adopting uniform policies on the movement of factors of production 
C)  establishing common trade policies against countries that were not members of the EU 
D)  implementing a common currency and a common monetary policy

Question 4

The potential for trade diversion is smaller when a custom union's external tariff is lower rather than higher.

Accepted Answer

A) True 
 B)False

Question 5

Figure 8.1 depicts the supply and demand schedules of calculators for Greece,a "small" country that is unable to affect the world price.Greece's supply and demand schedules of calculators are respectively depicted by SG and DG.Assume that Greece imports calculators from either Germany or France.Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit,while France can supply calculators at $30 per unit.
Figure 8.1.Effects of a Customs Union
  
-Consider Figure 8.1.Assume Greece levies a per-unit tariff of $20 on imports from both Germany and France.??As a result of the $20 tariff,Greece's consumer surplus falls by:

Accepted Answer

A)  $90 
B)  $100 
C)  $110 
D)  $120 
A)  $90 
B)  $100 
C)  $110 
D)  $120

For most developing countries:

Under the variable levy system of the European Union,EU farmers are protected against import competition by tariffs that vary inversely with the world price.

As of 2016,18 members of the European Union had adopted further economic integration than the other members by

The potential for trade diversion is smaller when a custom union's external tariff is lower rather than higher.

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

For most developing countries:

Under the variable levy system of the European Union,EU farmers are protected against import competition by tariffs that vary inversely with the world price.

As of 2016,18 members of the European Union had adopted further economic integration than the other members by

The potential for trade diversion is smaller when a custom union's external tariff is lower rather than higher.

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