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quiz 4
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Questions in this quiz (7)
1A nation's import demand curve for a specific product:
- Ais up sloping.
- Bshows the amount of the product it will import at prices below its domestic rice.
- Clies above its export supply curve for the product.
- Ddepends on the domestic demand for the product, but not on domestic supply.
2The organization created to oversee the provisions of multilateral trade agreements, resolve disputes under the international trade rules, and meet periodically to consider further trade liberalization is called the:
- AInternational Monetary Fund (IMF).
- BWorld Trade Organizations (WTO).
- CCommon Market Organization (CMO).
- DInternational Trade Commission (ITC).
3In a two-nation model, the equilibrium world price will occur where:
- Aone nation's export supply curve intersects the other nation's import demand curve.
- Bexports are exactly twice the level of imports.
- Cboth nation's export supply curves are horizontal.
- Dboth nation's import demand curves are vertical.
4Dumping of goods abroad:
- Aconstitutes a general case for permanent tariffs.
- Bmay be a part of a firm's price discrimination strategy.
- Cmay be a part of a nation's strategy to rectify its trade deficit.
- Ddrives up prices of the dumped goods.
5A basic assumption of the two-nation production possibilities curves that are straight lines is that:
- AOpportunity costs are constant
- BOpportunity costs are increasing
- CEach nation is operation at a point inside its production possibilities curve.
- DEach nation is operation at a point outside its production possibilities curve.
6An excise tax that is applied to imported products which are not produced domestically is a(n).
- AProtective tariff
- BRevenue tariff
- CImport quota
- DNontariff barrier
7Which is a valid counterargument to the call for higher tariffs to save U.S. jobs?
- AThe need to protect U.S. worker from the dumping of foreign products
- BStrategic trade policy calls for equal treatment of all trading nations so that they will have the same competitive conditions
- CU.S. firms and workers must be protected from the ruinous competition of nations where wages for workers are low
- DImports may eliminate some U.S. jobs, but they create others, so they may have little or no effect on employment
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- economics
- Author
- j g
- Language
- English
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