Question 1

The most common form of tariff is a countervailing duty.

Accepted Answer

A) True 
 B)False

Question 2

Choose one of the arguments countries generally use to justify protection for a particular industry.Describe the argument and any inherent problems with it.Is the argument primarily an economic or a noneconomic one?

Accepted Answer

The revenue argument says that for low i...

Question 3

Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection.

Accepted Answer

Traditional knowledge is often embedded ...

Question 4

If a country faces action under Section 301 of the U.S.Trade Act of 1974,it means that the country has

Accepted Answer

A)  exceeded average import growth by more than 301 percent.
B)  exceeded average export growth by more than 301 percent.
C)  tariffs that are above 301 percent.
D)  been charged by the United States with systematically engaging in unfair trade practices.
E)  been charged by the WTO with violating its trade obligations.

Question 5

"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity.Which of the following does NOT contribute to increasing productivity?

Accepted Answer

A)  Education and training
B)  Government subsidies
C)  Infrastructure
D)  Capital

Question 6

In the United States,which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Accepted Answer

The United...

Question 7

The system of trade rounds under GATT and the WTO has been successful at creating trade rules and reducing trade barriers.

Accepted Answer

A) True 
 B)False

Question 8

Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used.

Accepted Answer

A) True 
 B)False

Question 9

A major difficulty with the infant industry argument for protection is that

Accepted Answer

A)  government revenue will fall with a tariff.
B)  it requires the nation to fall into the large country case for tariff protection.
C)  effective rates of protection are usually greater than nominal rates.
D)  the measurement of production externalities is hard and uncertain.
E)  the productivity of infant industries is usually declining.

Question 10

Historically,one of the most common reasons for countries to impose tariffs was

Accepted Answer

A)  to protect their national security.
B)  to raise revenue for the government.
C)  to eliminate unemployment.
D)  to counter inflation.
E)  None of the above.

Question 11

Dumping occurs when a firm

Accepted Answer

A)  sells too much of a good in a foreign country.
B)  sells in a foreign country at prices that are below fair value.
C)  sells in its home market at prices that are below the average price charged by its competitors.
D)  sells in a foreign market at prices that are below the prices charged by firms based in the foreign market.
E)  charges more than a fair price.

Question 12

Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP.

Accepted Answer

A) True 
 B)False

Question 13

Infant industry protection requires

Accepted Answer

A)  a positive technological externality.
B)  a national security externality.
C)  time limited protection.
D)  Both A and B.
E)  Both A and C.

Question 14

One reason why producers have an incentive to organize in favor of protection is because

Accepted Answer

A)  producer gains are spread across so many firms that no one gets a large share of the benefits.
B)  producer gains are relatively concentrated.
C)  there is no real cost to the economy.
D)  producer gains outweigh consumer losses.
E)  it is a cheap way to keep their employees happy.

Question 15

Which of the following is FALSE?

Accepted Answer

A)  The analysis of agriculture,textiles,and clothing in the EU,the United States,and Japan supports the proposition that older sectors of the economy are most protected,particularly in cases where the nation has lost a substantial part of its comparative advantage.
B)  Even when tariffs are relatively low,the cost per job saved tends to be high.
C)  Commercial policy is grossly inefficient at achieving the objective of job preservation.
D)  Trade barriers in high-income countries never cause unintended consequences in low-income countries because most of their trade is with other industrialized countries.

Question 16

A countervailing duty is a tariff that is levied to counteract

Accepted Answer

A)  the dumping of goods in the domestic market by foreign firms.
B)  a sudden surge of imports which hurt a domestic industry.
C)  subsidies given to foreign firms by their own governments.
D)  the tariff on domestic goods that are enacted by foreign governments.
E)  low prices for imported goods that are made in countries with low wages.

Question 17

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Accepted Answer

A) True 
 B)False

Question 18

Television programming might be targeted for protection in a country using which of the following arguments?

Accepted Answer

A)  Infant industry
B)  National security
C)  Need for retaliation
D)  Labor argument
E)  Cultural protection

Question 19

In the United States,which part of government investigates claims of subsidies or dumping?

Accepted Answer

The International Tr...

Question 20

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Accepted Answer

A) True 
 B)False

Exam 7: Commercial Policy

In the United States,which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?

Correct AnswerverifiedThe United...View AnswerShow Answer

Protection in the form of tariffs or quotas is a very inefficient tool for job creation and preservation.

Correct AnswerverifiedShow Answer

Describe traditional knowledge and how it relates to current trade issues about intellectual property rights protection.

Correct AnswerverifiedTraditional knowledge is often embedded ...View AnswerShow Answer

Historically,one of the most common reasons for countries to impose tariffs was

Correct AnswerverifiedShow Answer

Infant industry protection requires

Correct AnswerverifiedShow Answer

In the United States,which part of government investigates claims of subsidies or dumping?

Correct AnswerverifiedThe International Tr...View AnswerShow Answer

Which of the following is FALSE?

Correct AnswerverifiedShow Answer

A countervailing duty is a tariff that is levied to counteract

Correct AnswerverifiedShow Answer

Australia has one of the most heavily subsidized agricultural sectors as a percentage of domestic GDP.

Correct AnswerverifiedShow Answer

A major difficulty with the infant industry argument for protection is that

Correct AnswerverifiedShow Answer

"Cheap foreign wages" is a poor argument for protection because it fails to recognize the importance of productivity.Which of the following does NOT contribute to increasing productivity?

Correct AnswerverifiedShow Answer

Dumping occurs when a firm

Correct AnswerverifiedShow Answer

Choose one of the arguments countries generally use to justify protection for a particular industry.Describe the argument and any inherent problems with it.Is the argument primarily an economic or a noneconomic one?

Correct AnswerverifiedThe revenue argument says that for low i...View AnswerShow Answer

The most common form of tariff is a countervailing duty.

Correct AnswerverifiedShow Answer

It seems likely that economic sanctions ultimately would have led to regime change in Iraq.

Correct AnswerverifiedShow Answer

The system of trade rounds under GATT and the WTO has been successful at creating trade rules and reducing trade barriers.

Correct AnswerverifiedShow Answer

Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used.

Correct AnswerverifiedShow Answer

Television programming might be targeted for protection in a country using which of the following arguments?

Correct AnswerverifiedShow Answer

One reason why producers have an incentive to organize in favor of protection is because

Correct AnswerverifiedShow Answer

If a country faces action under Section 301 of the U.S.Trade Act of 1974,it means that the country has

Correct AnswerverifiedShow Answer

Correct Answer
verified
The United...
View Answer

Correct Answer
verified

Correct Answer
verified
Traditional knowledge is often embedded ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The International Tr...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The revenue argument says that for low i...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified