Trade Regulations And Industrial Policies MCQs

Option A: international dumping

Option B: countervailing duties

Option C: Strategic trade policy

Option D: export promotion policy

Correct Answer: Strategic trade policy ✔

Option A: eliminate all tariffs between countries

Option B: increase all tariffs between countries

Option C: maintain a nondiscriminatory structure of tariffs

Option D: maintain a discriminatory structure of tariffs

Correct Answer: maintain a nondiscriminatory structure of tariffs ✔

Option A: increase consumer surplus in the importing country

Option B: decrease producer surplus in the importing country

Option C: impose a price floor on foreign prices in the importing country

Option D: impose a price ceiling on foreign price in the importing country

Correct Answer: impose a price floor on foreign prices in the importing country ✔

Option A: predatory dumping represents the most common form of dumping by U.S firms

Option B: U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare

Option C: dumping can never be a profit-maximizing strategy for U.S firms to pursue

Option D: U.S firms rarely if ever, engage in distress dumping or persistent dumping

Correct Answer: U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare ✔

Option A: generalized system of preference

Option B: countervailing duty

Option C: domestic content

Option D: safeguards

Correct Answer: safeguards ✔

Option A: are abolished by the World Trade Organization

Option B: result in decreases in consumer surplus for domestic households

Option C: are imposed by industrial countries but not developing countries

Option D: result in lower-priced goods for domestic consumers

Correct Answer: result in decreases in consumer surplus for domestic households ✔

Option A: it reduces the sovereignty of member countries

Option B: favors free trade over the quality of the environment

Option C: it has no way to solve trade disputes among member countries

Option D: it is a puppet of multinational corporations

Correct Answer: it has no way to solve trade disputes among member countries ✔

Option A: decreases, decreases

Option B: decreases, increases

Option C: increases, decreases

Option D: increases, increases

Correct Answer: decreases, increases ✔

Option A: 5 radios

Option B: 10 radios

Option C: 15 radios

Option D: zero radios

Correct Answer: zero radios ✔

Option A: decrease the level of national security

Option B: provide benefits to some particular industry

Option C: provide benefits to the entire nation

Option D: not yield welfare losses for the nation

Correct Answer: provide benefits to the entire nation ✔

Option A: the WTO

Option B: the GATT

Option C: the IMF

Option D: the World Bank

Correct Answer: the GATT ✔

Option A: Nontariff barriers (NTBs) and tariffs have increased in relative importance

Option B: NTBs and tariffs have decreased in relative importance

Option C: NTBs have increased and tariffs have decreased in relative importance

Option D: NTBs have decreased and tariffs have increased in relative importance

Correct Answer: NTBs have increased and tariffs have decreased in relative importance ✔

Option A: U.S grains consumers and producers of bread

Option B: U.S farmers and grains companies

Option C: Grain Producers in foreign countries

Option D: Grain consumers in foreign countries

Correct Answer: U.S farmers and grains companies ✔

Option A: are prohibited by the World Trade Organization

Option B: affect international trade but not international financial flows

Option C: involve restrictions on imports, but not exports

Option D: involve restrictions in imports exports and or financial flows

Correct Answer: involve restrictions in imports exports and or financial flows ✔

Option A: have tariff rates equal to zero suggesting a free trade policy for the United States

Option B: have lower tariff rates than the rates that apply to any other country sending goods to the United States

Option C: have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment

Option D: have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

Correct Answer: have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment ✔

Option A: World Bank

Option B: International Trade Commission

Option C: Department of justice

Option D: World Trade Organization

Correct Answer: World Trade Organization ✔

Option A: Kennedy Round of 1964-1967

Option B: Tokyo Round of 1973-1979

Option C: Uruguay Round of 1986-1993

Option D: Doha Round of 2003-2007

Correct Answer: Uruguay Round of 1986-1993 ✔

Option A: embargoes

Option B: tariff-rate quotas

Option C: voluntary export restraints

Option D: nontariff barriers

Correct Answer: embargoes ✔

Option A: increase

Option B: decrease

Option C: not change

Option D: None of These

Correct Answer: increase ✔

Option A: Canada

Option B: Australia

Option C: Japan

Option D: China

Correct Answer: China ✔

Option A: General Agreement on Tariffs and Trade

Option B: World Trade Organization

Option C: Smoot Hawley Organization

Option D: McKinley Agreement on Trade policy

Correct Answer: General Agreement on Tariffs and Trade ✔

Option A: bilateral tariff reductions to promote trade liberalization

Option B: the use of the most-favored nation clause (normal trade relations)

Option C: nondiscrimination in trading relationships

Option D: the prohibition of import quotas and export quotas

Correct Answer: bilateral tariff reductions to promote trade liberalization ✔

Option A: The price of radios in Mexico equals $60 and its imports equal 30 radios

Option B: The price of radios in Mexico equals $30 and its imports equal 30 radios

Option C: The price of radios in Mexico equals $40 and its imports equals 20 radios

Option D: Th price of radios in Mexico equals $20 and its imports equal 40 radios

Correct Answer: The price of radios in Mexico equals $30 and its imports equal 30 radios ✔

Option A: foreign dumping of goods in the U.S

Option B: subsidies granted to foreign firms that export to the U.S

Option C: buy national policies of foreign government

Option D: stringent environmental regulations of foreign government s

Correct Answer: subsidies granted to foreign firms that export to the U.S ✔

Option A: charge the nation’s products a lower tariff than any other nation’s

Option B: charge that nation’s products a tariff rate no higher than that on any other nation

Option C: charge that nation’s products a higher tariff than any other nation’s

Option D: exports to that nation any products that it wants to purchase

Correct Answer: B. charge that nation’s products a tariff rate no higher than that on any other nation ✔

Option A: domestic workers lobbying for import restriction

Option B: domestic workers lobbying for export restrictions

Option C: domestic consumers lobbying for export restrictions

Option D: domestic consumers lobbying for import restrictions

Correct Answer: domestic consumers lobbying for import restrictions ✔

Option A: lesser it initial dependence on foreign produce goods.

Option B: more elastic the target country demand schedule

Option C: greater then available output from alternative suppliers

Option D: more in elastic the target country supply scheduleB.

Correct Answer: ✔

Option A: Grain prices would rise in the Soviet union

Option B: Consumer surplus would decrease for the soviets

Option C: Grains prices would rise in the united States

Option D: Export revenues would decrease for U.S producers

Correct Answer: Grains prices would rise in the united States ✔