Deck 6: Trade Regulations and Industrial Policies

Question 1

The Uruguay Round of Multilateral Trade Negotiations accomplished all EXCEPT which of the following?

A) placed primary emphasis on nontariff trade barriers
B) estimated to yield modest gains in world output and employment
C) achieved cuts in tariffs but not in nontariff trade barriers
D) abolished all barriers to trade in agricultural products

Answer 1

achieved cuts in tariffs but not in nontariff trade barriers

Question 2

Under U.S.commercial policy, which clause permits the modification of a trade liberalization agreement on a temporary basis if serious injury occurs to domestic producers as a result of the agreement?

A) adjustment assistance clause
B) escape clause
C) most-favored-nation clause
D) reciprocal-trade clause

Answer 2

escape clause

Question 3

Under U.S.commercial policy, the escape clause results in

A) temporary quotas granted to firms injured by import competition.
B) tariffs that offset export subsidies granted to foreign producers.
C) tax advantages extended to minority-owned exporting firms.
D) duties that offset commercial dumping on the part of foreign firms.

Answer 3

temporary quotas granted to firms injured by import competition.

Question 4

The U.S."trade-remedy laws" could establish all of the following EXCEPT

A) import tariffs to protect U.S. firms seriously injured by foreign competition.
B) countervailing duties that neutralize foreign export subsidies.
C) antidumping duties that protect U.S. firms from imports sold at less-than-fair-value.
D) economic sanctions levied against hostile nations.

Question 5

The General Agreement on Tariffs and Trade and its successor, the World Trade Organization, have resulted in

A) termination of export subsidies applied to manufactured goods.
B) termination of import tariffs applied to manufactured goods.
C) encouragement of beggar-thy-neighbor policies.
D) reductions in trade barriers via multilateral negotiations.

Question 6

Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain over domestic producers because of foreign

A) tariffs.
B) subsidies.
C) quotas.
D) buy-national policies.

Question 7

______________ attempt to produce a fair and free-trading environment in which there exists a level playing field.

A) Trade-remedy laws
B) Industrial policies
C) Strategic trade policies
D) Economic sanctions

Question 8

A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is known as a (an)

A) international dumping policy.
B) trade adjustment assistance policy.
C) most-favored-nation policy.
D) beggar-thy-neighbor policy.

Question 9

Which policy reflects the notion that if society enjoys gains that are due to increased efficiency stemming from trade liberalization, some sort of compensation should be provided to those who are temporarily hurt by import competition?

A) countervailing duties
B) trade adjustment assistance
C) domestic subsidies
D) most-favored-nation standard

Question 10

For the United States, which organization makes loans to foreign buyers of U.S.manufactured goods?

A) Export-Import Bank
B) Domestic International Sales Corporation
C) Organization for Economic Cooperation and Development
D) Commodity Credit Corporation

Question 11

Adjustment assistance is sometimes used to assist

A) in retraining workers displaced by imports.
B) in retraining workers displaced by exports.
C) foreign firms injured by our quotas.
D) foreign firms injured by our tariffs.

Question 12

Under the original provisions of the Reciprocal Trade Agreements Act, the president of the United States was authorized to cut tariffs up to

A) 10 percent.
B) 50 percent.
C) 75 percent.
D) 100 percent.

Question 13

As a way of helping American firms trade in the world market, U.S.trade law provides antitrust exemptions for horizontal combinations of American firms engaged solely in export trade.Such firms are permitted to form

A) export trade associations.
B) domestic international sales corporations.
C) export-import banks.
D) commodity sales corporations.

Question 14

The World Trade Organization was established by the ____ of multilateral trade negotiations.

A) Kennedy Round
B) Tokyo Round
C) Uruguay Round
D) Clinton Round

Question 15

Throughout the post-World War II era, the importance of tariffs as a trade barrier has

A) increased.
B) decreased.
C) either increased or decreased.
D) neither increased nor decreased.

Question 16

The principle of normal trade relations (most-favored-nation) treatment was established with the passage of the

A) Fordney-McCumber Act of 1922.
B) Smoot-Hawley Act of 1930.
C) Reciprocal Trade Agreements Act of 1934.
D) Trade Act of 1974.

Question 17

Trade theory suggests that the United States would gain from a subsidy provided by Japan to its calculator producers if the gains to American consumers of calculators more than offset the losses to American calculator producers.This occurs as long as the United States

A) is a net importer of calculators.
B) is a net exporter of calculators.
C) has an absolute advantage in calculator production.
D) has a comparative advantage in calculator production.

Question 18

The Export-Import Bank of the United States encourages American firms to sell overseas by providing direct loans and loan guarantees to foreign purchasers of American goods.To American firms, this represents a

A) specific subsidy.
B) ad valorem subsidy.
C) domestic subsidy.
D) export subsidy.

Question 19

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

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 1970.

Question 20

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

A) falling tariffs.
B) increases in the volume of trade.
C) intensifying the worldwide depression.
D) efforts to liberalize nontariff trade barriers.

Question 21

The World Trade Organization provides for all of the following EXCEPT

A) the usage of the normal-trade-relation (most-favored-nation) clause.
B) assistance in the settlement of trade disagreements.
C) multilateral tariff reductions.
D) bilateral tariff reductions.

Question 22

Countervailing duties may be imposed

A) in response to a foreign export subsidy.
B) in response to a foreign antidumping tariff.
C) to promote exports of domestic companies.
D) to promote imports of domestic consumers.

Question 23

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Consider Figure 6.1.At the monopoly price as established by Boeing, Canadian consumers realize $______________ of consumer surplus from the availability of aircraft.

A) $4 million
B) $8 million
C) $12 million
D) $16 million

Question 24

The Uruguay Round of trade negotiations lowered

A) trade sanctions levied against South Africa.
B) trade sanctions levied against the Soviet Union.
C) tariffs but not nontariff trade barriers.
D) tariffs as well as nontariff trade barriers.

Question 25

Which international organization stipulates procedures for the settlement of international trade disputes?

A) World Trade Organization
B) World Bank
C) International Monetary Fund
D) Organization of Economic Development

Question 26

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

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 countries.

Question 27

Export embargoes induce greater losses in consumer surplus for the target country

A) the lesser its initial dependence on foreign-produced goods.
B) the more elastic the target country's demand schedule.
C) the greater the available output from alternative suppliers.
D) the more inelastic the target country's supply schedule.

Question 28

In U.S.trade law, which measure permits the levying of restrictions on fairly traded imports that harm or threaten to harm American manufacturers?

A) antidumping duty
B) countervailing duty
C) national security clause
D) escape clause

Question 29

Industrial policy attempts to fulfill all of the following objectives EXCEPT

A) improving the infrastructure for an industry.
B) easing transitions for workers in declining industries.
C) supporting troubled industries if the difficulty is temporary.
D) fostering industries that offer long-run comparative disadvantage.

Question 30

The strongest political pressure for a trade policy that results in higher protectionism comes from

A) domestic workers lobbying for import restrictions.
B) domestic workers lobbying for export restrictions.
C) domestic consumers lobbying for export restrictions.
D) domestic consumers lobbying for import restrictions.

Question 31

In 1990, the United States and its allies imposed trade embargoes on exports/imports to/from Iraq in response to its invasion of Kuwait.The embargoes would induce smaller losses in Iraq's consumer surplus the

A) lesser its initial dependence on foreign products.
B) less elastic Iraq's demand schedule.
C) lesser the available output from alternative suppliers.
D) more inelastic Iraq's supply schedule.

Question 32

During the past four decades

A) nontariff barriers (NTBs) and tariffs have increased in importance.
B) NTBs and tariffs have decreased in importance.
C) NTBs have increased and tariffs have decreased in importance.
D) NTBs have decreased and tariffs have increased in importance.

Question 33

The Uruguay Round of trade negotiations was primarily concerned with

A) import tariffs.
B) export tariffs.
C) economic sanctions.
D) nontariff trade barriers.

Question 34

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

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 nations.

Question 35

The average tariff rate today on dutiable imports in the United States is approximately

A) 5 percent of the value of imports.
B) 15 percent of the value of imports.
C) 20 percent of the value of imports.
D) 25 percent of the value of imports.

Question 36

Suppose the United States imposes trade sanctions (export quotas) on grain sold to the Russians.Assuming other nations do NOT increase grain exports to the Russians, all of the following would occur EXCEPT

A) grain prices would rise in Russia.
B) consumer surplus would decrease for the Russians.
C) grain prices would rise in the United States.
D) export revenues would decrease for U.S. producers.

Question 37

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

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 nation.

Question 38

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Referring to Figure 6.1, assume that Boeing is the first to enter the Canadian market.Without a governmental subsidy, the firm maximizes profits by selling ______________ aircraft at a price of $______________, and realizes profits totaling $______________.

A) 4, $12 million, $16 million
B) 4, $16 million, $12 million
C) 8, $12 million, $16 million
D) 8, $16 million, $12 million

Question 39

The most recent round of multilateral trade negotiations is the

A) Kennedy Round.
B) Tokyo Round.
C) Doha Round.
D) Geneva Round.

Question 40

Suppose the president lowers tariffs on radios as the result of negotiations under the trade agreements program.Radio producers in the United States can appeal under the

A) escape clause if rising imports substantially injure the U.S. radio industry.
B) escape clause if rising unemployment occurs even though imports remain unchanged.
C) infant industry clause if rising imports cause unemployment to rise among U.S. radio workers.
D) infant industry clause if rising imports result in losses for U.S. radio companies.

Question 41

In 1995, the General Agreement on Tariffs and Trade was replaced by the ______________.

A) Agency for International Development
B) Organization for Economic Cooperation and Development
C) United Nations Center for Trade and Development
D) World Trade Organization

Question 42

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Consider Figure 6.1.Suppose the European government provides Airbus a subsidy of $4 million on each aircraft manufactured and that the subsidy convinces Boeing to exit the Canadian market.As the monopoly seller, Airbus maximizes profit by selling ______________ aircraft at a price of $______________, and realizes profits totaling $______________.

A) 6, $10 million, $36 million
B) 6, $12 million, $24 million
C) 12, $10 million, $36 million
D) 12, $12 million, $24 million

Question 43

Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.With free trade, Iraq purchases ______________ computers at a price of $______________ and realizes $______________ of consumer surplus from the availability of computers.

A) 30, $3,000, $25,000
B) 30, $3,000, $35,000
C) 30, $3,000, $45,000
D) 30, $3,000, $55,000

Question 44

Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus, $______________ is NOT transferred to other sectors of Iraq's economy and represents deadweight loss.

A) $5,000
B) $10,000
C) $15,000
D) $20,000

Question 45

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.The South Korean subsidy ______________ Mexican manufacturers, since their producer surplus ______________ by $______________.

A) helps, rises, $60
B) helps, rises, $100
C) hurts, falls, $60
D) hurts, falls, $100

Question 46

The implicit industrial policies of the U.S.government have included

A) formulating industry-specific economic policies designed to promote national champions.
B) nationalizing basic industries such as steel and autos.
C) encouraging cartelization of aircraft and aluminum manufacturers.
D) improving the setting for industry such as communications and infrastructure.

Question 47

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.To help its firms further penetrate export markets, suppose the South Korean government provides them a production subsidy of $20 per calculator.With the subsidy, South Korean firms charge a price of $______________ and export ______________ calculators to Mexico.

A) $40, 8
B) $40, 10
C) $20, 8
D) $20, 10

Question 48

Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.For the United States, the export quota results in a (an)

A) improvement in its terms of trade with Iraq.
B) increase in its export revenue.
C) increase in domestic computer prices.
D) decrease in domestic consumer surplus.

Question 49

In 1995, the ______________ was established to administer the new global trade rules agreed in the Uruguay Round of multilateral trade negotiations.

A) World Trade Organization
B) Organization for Economic Cooperation and Development
C) General Agreement on Tariffs and Trade
D) United Nations

Question 50

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.With free trade, Mexican consumers purchase ______________ calculators, Mexican firms produce ______________ calculators, and ______________ calculators are imported.

A) 10, 4, 6
B) 10, 6, 4
C) 10, 8, 2
D) 10, 2, 8

Question 51

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.As a result of the South Korean subsidy, Mexicans find their consumer surplus

A) rising by $160.
B) rising by $220.
C) falling by $160.
D) falling by $220.

Question 52

Which is NOT a factor influencing the success of sanctions?

A) cultural factors including nationalistic attitudes
B) strength of political opposition in the targeting nation
C) the number of nations imposing sanctions
D) limitations entailed on the official lending or aid

Question 53

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.With free trade, Mexicans attain $______________ of consumer surplus from the availability of calculators, while Mexican producer surplus equals $______________.

A) $400, $200
B) $200, $400
C) $500, $180
D) $500, $240

Question 54

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Referring to Figure 6.1, the total cost of the Airbus subsidy to the European taxpayer equals

A) $16 million.
B) $20 million.
C) $24 million.
D) $28 million.

Question 55

Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.Of the quota-induced change in Iraqi consumer surplus, the amount of the change in Iraq's consumer surplus that is transferred to other sectors of Iraq's economy is captured by the United States as

A) tax revenue.
B) export revenue.
C) producer surplus.
D) consumer surplus.

Question 56

Figure 6.3 represents the Iraqi computer market. Assume Iraq purchases all of its computers from the United States.
Figure 6.3 Iraqi Computer Market and Economic Sanctions

-Consider Figure 6.3.In response to Iraq's armed invasion of neighboring countries, suppose the United States imposes a partial embargo that limits exports to Iraq to 10 computers.The export quota leads to a(n) ______________ in the price of computers equal to $______________ and a(n) ______________ in consumer surplus equal to $______________.

A) increase, $2,000, decrease, $40,000
B) increase, $4,000, decrease, $60,000
C) decrease, $2,000, increase, $40,000
D) decrease, $4,000, increase, $60,000

Question 57

Figure 6.2 illustrates the calculator market for Mexico, assumed to be a small nation that is unable to influence the South Korean (world) price. Assume the South Korean price to be $60 per calculator.
Figure 6.2. Effects of an Export Subsidy

-Consider Figure 6.2.For Mexico's producers and consumers as a whole, the South Korean subsidy leads to a(n)

A) $120 welfare gain.
B) $320 welfare gain.
C) $120 welfare loss.
D) $320 welfare loss.

Question 58

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Consider Figure 6.1.For Europe as a whole (Airbus and European taxpayers), the subsidy leads to a (an) ______________ in net revenues of $______________.

A) increase, $12 million
B) increase, $16 million
C) decrease, $12 million
D) decrease, $16 million

Question 59

Assume Boeing Inc. (of the United States) and Airbus Industries (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions, as seen in Figure 6.1.
Figure 6.1. Strategic Trade Policy: Boeing versus Airbus

-Referring to Figure 6.1, the Airbus subsidy leads to a (an) increase/decrease in Canadian consumer surplus of $______________, as compared to the consumer surplus that existed in the absence of a subsidy.

A) increase of $8 million
B) increase of $10 million
C) decrease of $8 million
D) decrease of $10 million

Question 60

Economic sanctions are most effective in causing the target nation to modify its behavior when the

A) target nation had negligible economic relationships with the imposing nation prior to the sanctions.
B) people of the target nation have weak cultural ties to the people of the imposing nation.
C) sanctions are levied by a large number of nations.
D) target government is supported by the majority of its people.

Question 61

As viewed by the World Trade Organization, ______________ constitutes unfair competition.

A) export antisubsidies
B) export subsidies
C) import tariff
D) import subsidies

Question 62

Which major economy spends the most in helping retrain workers and getting them reemployed?

A) Denmark
B) Germany
C) France
D) United States

Question 63

______________ generally result(s) in greater economic pressure on the target nation.

A) Unilateral sanctions
B) Multilateral sanctions
C) International ostracism
D) Financial sanctions

Question 64

Which of the following is NOT true about economic sanctions?

A) They protect domestic economy.
B) They increases nuclear proliferation.
C) They combat international terrorism.
D) They protect human rights.

Question 65

Figure 6.4 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner.How much profit will Boeing make?

A) 0
B) $150 million
C) $230 million
D) $250 million

Question 66

John, aged 55 years, has lost his job as a maintenance mechanic in a company he had worked at for 10 years.The company has now shifted overseas.He has now joined another concern where he is being paid $30,000 against the $39,000 he was earning previously.Is he eligible for wage insurance? If no, why? If yes, how much would he get?

A) People above 60 years of age only can claim wage insurance.
B) Yes, people above 50 can claim wage insurance. He will get $4,500.
C) People above 55 years of age only can claim wage insurance.
D) Yes, people 55 years and above can claim wage insurance. He will get $5,500.

Question 67

Figure 6.5 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.5.Suppose the lone producer of jetliners in the world is Boeing, which 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.As a result of the entry of the subsidized producer, what will happen to the consumer surplus gained by Japanese airlines from buying jetliners?

A) decrease by $109 million
B) nothing
C) increase by $50 million
D) increase by $109 million

Question 68

Figure 6.4 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner.What price will Boeing charge for jetliners in the Japanese market and how many will they sell?

A) $20 million, 23
B) $20 million, 46
C) $30 million, 46
D) $30 million, 23

Question 69

Figure 6.5 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.5.Suppose the lone producer of jetliners in the world is Boeing, which 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 much profit will Airbus earn?

A) $230 million
B) $350 million
C) $416 million
D) $450 million

Question 70

Economists tend to agree that in defining the rules of trade among countries, ______________ is preferable to ______________.

A) freer trade, protectionism
B) growth, freer trade
C) freer trade, growth
D) protectionism, freer trade

Question 71

Compared with other displaced workers, ______________ workers tend to face ______________ adjustment costs as they must endure longer ______________ spells and larger wage losses once reemployed.

A) trade-displaced, higher, unemployment
B) unemployed, higher, nonproductive
C) trade-displaced, lower, unemployment
D) unemployed, lower, nonproductive

Question 72

Assume that an import subsidy gives a foreign producer an undue advantage.As an import competing producer, what would you do?

A) petition the U.S. Department of Commerce
B) petition the U.S. International Trade Commission
C) petition the WTO
D) discuss the issue with the foreign producer

Question 73

Industrial policies

A) require formal explicit efforts by governments.
B) will not be implicit.
C) have never been used by the U.S. government.
D) should be approved by the World Trade Organization.

Question 74

Figure 6.4 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.4.Suppose the lone producer of jetliners in the world is Boeing, which faces a constant marginal cost of $20 million per jetliner.How much consumer surplus will the Japanese airlines who purchase the jetliners earn from their transactions with Boeing?

A) 0
B) $115 million
C) $230 million
D) $250 million

Question 75

Figure 6.5 Japanese Market for Jetliners
Consider the Japanese market for jetliners as depicted in Figure 6.5.Suppose the lone producer of jetliners in the world is Boeing, which 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 jetliners will Airbus produce and what price will they sell them for?

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

Question 76

The purpose of the countervailing duty is to

A) increase the price of the imported good.
B) decrease the price of the imported good.
C) increase the price of the exported good.
D) decrease the price of the exported good.

Question 77

Julia lost her job because of foreign competition.She has now trained in nursing and is working in a hospital.Which benefit of the U.S.government do you think helped her make this adjustment?

A) wage insurance
B) weekly income support
C) reimbursement of relocation costs
D) assistance in preparing for and obtaining new employment

Question 78

The United States

A) has used antidumping laws sparingly to protect domestic producers.
B) has never used antidumping laws to protect domestic producers.
C) has targeted antidumping action against Canada only so far.
D) has been a heavy user of antidumping laws to protect domestic producers.

Question 79

Which can be categorized as illegal subsidy?

A) approving loans at predetermined interest rates
B) paying nominal wages to workers
C) providing discounts to electricity when energy is the largest expense
D) collecting rent as appropriate

Question 80

Trade adjustment assistance policies

A) can resolve all workers' challenges to free trade.
B) attempt to share gains from free trade with disadvantaged workers.
C) have never been used to sustain a losing business concern.
D) are financed by state and local tax revenues.