Trade Policies For The Developing Nations MCQs

Option A: 2 million barrels per day, $100, $60 million

Option B: 4 million barrels per day, $80, $160 million

Option C: 6 million barrels per day, $60, $60 million

Option D: 8 million barrels per day, $40, $20 million

Correct Answer: 4 million barrels per day, $80, $160 million ✔

Option A: lower

Option B: higher

Option C: about the same height

Option D: None of the above

Correct Answer: higher ✔

Option A: has been a matter of low priority for the Chinese government

Option B: was achieved in the early 1950s

Option C: has been opposed by a number of labor and human rights organizations in other countries

Option D: has had negligible effect on trade between china and the United States

Correct Answer: has been opposed by a number of labor and human rights organizations in other countries ✔

Option A: flying geese

Option B: import substitution

Option C: export orientation

Option D: commodity expansion

Correct Answer: flying geese ✔

Option A: inelastic demand for these products in advanced countries

Option B: large increases in the supplies of these products on world markets because of export expansion policies

Option C: sluggish demand for these products in advanced countries

Option D: All of the above

Correct Answer: All of the above ✔

Option A: relatively small; more difficult

Option B: relatively small; easier

Option C: relatively large; more difficult

Option D: relatively large; easier

Correct Answer: relatively large; easier ✔

Option A: relatively greater then

Option B: relatively less than

Option C: the same as

Option D: any of the above

Correct Answer: relatively greater then ✔

Option A: Px/Pm

Option B: Pm/Px

Option C: (Pm/Px)Qm

Option D: (Px/Pm)Qx

Correct Answer: Px/Pm ✔

Option A: absolute advantage

Option B: comparative advantage

Option C: export-led growth

Option D: import substitution

Correct Answer: import substitution ✔

Option A: resource allocation based on the principle of absolute advantage

Option B: resource allocation based on the principle of comparative advantage

Option C: trade protection for import-competing firms

Option D: trade protection for exporting-competing firms

Correct Answer: resource allocation based on the principle of comparative advantage ✔

Option A: the principle of comparative advantage

Option B: the principle of absolute advantage

Option C: an outward-looking growth strategy

Option D: an inward-looking growth strategy

Correct Answer: an inward-looking growth strategy ✔

Option A: have been steadily rising in recent decades

Option B: have been more stable than the prices of manufactured goods

Option C: fluctuate about as much as the prices of manufactured goods

Option D: tend to be very unstable from year to year

Correct Answer: tend to be very unstable from year to year ✔

Option A: multilateral contracts

Option B: production and export controls

Option C: buffer stock arrangements

Option D: tariff-rates quotas

Correct Answer: tariff-rates quotas ✔

Option A: a lack of substitutes for oil

Option B: similar cost schedules for member countries

Option C: highly inelastic world demand curve for oil

Option D: economic recession for oil importing nations

Correct Answer: economic recession for oil importing nations ✔

Option A: unstable export markets

Option B: improving terms of trade

Option C: limited access to the markets of industrial countries

Option D: highly elastic demand curves for their products

Correct Answer: improving terms of trade ✔

Option A: be a manufactured good

Option B: be a primary product

Option C: have a low price elasticity of supply

Option D: have a high price elasticity of demand

Correct Answer: have a low price elasticity of supply ✔

Option A: import substitution

Option B: export promotion

Option C: commercial dumping

Option D: multilateral contract

Correct Answer: export promotion ✔

Option A: balance of trade deficits

Option B: price inflation

Option C: constrained economic growth

Option D: improving terms of trade

Correct Answer: improving terms of trade ✔

Option A: international trade per capita

Option B: real income per capital

Option C: unemployment per capita

Option D: calories per capita

Correct Answer: real income per capital ✔

Option A: sell 4 million pounds of tin

Option B: sell 8 million pounds of tin

Option C: buy 4 million pounds of tin

Option D: buy 8 million pounds of tin

Correct Answer: sell 4 million pounds of tin ✔

Option A: sell 4 million pounds of tin

Option B: sell 8 million pounds of tin

Option C: buy 4 million pounds of tin

Option D: buy 8 million pounds of tin

Correct Answer: buy 4 million pounds of tin ✔

Option A: $100, 2 million barrels per day $60 million

Option B: $80, 4 million barrels per day $70 million

Option C: $60, 6 million barrels per day, $20 million

Option D: $40, 8 million barrels per day, $0 million

Correct Answer: $40, 8 million barrels per day, $0 million ✔

Option A: World Bank

Option B: International Monetary Fund

Option C: Council on Foreign Relations

Option D: Organization of petroleum Exporting Countries

Correct Answer: World Bank ✔

Option A: is the first of the East Asian countries to be recognized for a successful outward-oriented development strategy

Option B: has retained to the present time its strategy of import substitution as a source of economic growth

Option C: has always accounted for a significant share of international trade, given its very large population

Option D: has significantly increased its openness to international trade and foreign investment in recent decades

Correct Answer: has significantly increased its openness to international trade and foreign investment in recent decades ✔

Option A: has shown that is easy to achieve cooperation among cartel members

Option B: was successful in raising oil prices in the 1970s but was disbanded in the 1980s

Option C: has shown greater success in realizing profits during periods of global recession

Option D: has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities

Correct Answer: has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities ✔

Option A: labor forces increase

Option B: capital stocks increase

Option C: new inventions increase productivity

Option D: All of the above

Correct Answer: All of the above ✔

Option A: relatively greater than

Option B: relatively less than

Option C: the same as

Option D: Any of the above

Correct Answer: relatively less than ✔

Option A: purchase; decrease

Option B: purchase; increase

Option C: sell; increase

Option D: sell; decrease

Correct Answer: sell; increase ✔

Option A: developing country export to advanced countries to receive preferential tariff treatment

Option B: developing country imports from advanced countries to receive preferential tariff treatment

Option C: any developing country to ignore the most-favored nation clause

Option D: any advanced country to ignore the most favored-nation clause

Correct Answer: developing country export to advanced countries to receive preferential tariff treatment ✔

Option A: relatively low import tariffs maintained by advanced countries

Option B: highly elastic demand for these products in advanced countries

Option C: declines in the supplies of these products on world markets

Option D: sluggish demand for these products in advanced countries

Correct Answer: sluggish demand for these products in advanced countries ✔

Option A: higher than

Option B: equal to

Option C: lower than

Option D: there is no general pattern

Correct Answer: lower than ✔

Option A: primary products such as tin and bauxite

Option B: intermediate products

Option C: labor-intensive agricultural products

Option D: labor-intensive manufacturing products

Correct Answer: primary products such as tin and bauxite ✔

Option A: lower tariff rates on goods from nations with normal trade relation status

Option B: lower tariff rates on goods from nations with most favored nation status

Option C: low or zero tariffs on goods from certain developing countries

Option D: identical tariff rates in products from all countries of the world

Correct Answer: identical tariff rates in products from all countries of the world ✔

Option A: the world Bank

Option B: the international Monetary Fund

Option C: The Generalized System of Preferences

Option D: All of the above

Correct Answer: All of the above ✔

Option A: tariff-rate quotas applied to imported goods

Option B: production and export controls

Option C: buffer stocks

Option D: multilateral contracts

Correct Answer: tariff-rate quotas applied to imported goods ✔

Option A: international commodity agreements program

Option B: multilateral contract program

Option C: generalized system of preferences program

Option D: export-led growth program

Correct Answer: generalized system of preferences program ✔

Option A: be a manufactured goods

Option B: be a primary product

Option C: have high price elasticity of supply

Option D: have a low price elasticity of demand

Correct Answer: have a low price elasticity of demand ✔

Option A: normal trade relation status

Option B: most favored nation status

Option C: offshore assembly provisions

Option D: Generalized System of Preferences

Correct Answer: Generalized System of Preferences ✔

Option A: mixed evidence that does not substantiate the deterioration hypothesis

Option B: overwhelming support for the deterioration hypothesis

Option C: overwhelming opposition to the deterioration hypothesis

Option D: None of the above

Correct Answer: mixed evidence that does not substantiate the deterioration hypothesis ✔

Option A: export promotion

Option B: import promotion

Option C: international commodity agreements

Option D: multilateral contracts

Correct Answer: export promotion ✔