7 The guiding principle of the concept of most favored nations is: C A) that every nation has a preferred trading partner.
B) that nations should cooperate with other nations that cooperate with them. C) nondiscrimination among trading partners.
D) that each nation should be able to decide what other nations it prefers as trading partners.
8 The current WTO multilateral negotiations about international trade and the reduction of trade barriers is called the: B A) Uruguay Round. B) Doha Round. C) Kennedy Round. D) Geneva Round.
9 Tariffs make imports ____________________ in domestic markets and domestic products ____________________ in domestic markets. A A) less competitive; more competitive B) more competitive; less competitive C) less competitive; less competitive D) more competitive; more competitive
10 When a tariff is imposed on an imported product: A
A) domestic producers of the product can increase their prices. B) foreign producers of the product will increase their production. C) world prices for the product will rise in the short term.
D) there is no change in consumption or price if the importing country is a small country.
11 When a tariff is imposed on an imported product, domestic consumers of that product: D A) increase their consumption of both imported and domestic versions of the product. B) are not affected by the imposition of the tariff.
C) decrease their consumption of both imported and domestic versions of the product. D) pay a higher price for the imported product or buy less of the imported product.
12 If a tariff is not so high as to prohibit the importation of the product subject to the tariff, the government imposing the tariff benefits: B
A) because foreign producers know that the government imposing the tariff can manipulate foreign trade.
B) by collecting revenue from the tariff that the government can use for purposes not connected to trade.
C) because domestic production is protected from foreign competition at no cost to domestic consumers.
D) through the reputation for fair trading that it gains in the view of other countries.
13 The ____________________ says that every dollar of gain or loss is just as important as every other dollar of gain or loss, regardless of who gains or loses. C
A) net gain theory
B) principle of equality
C) one dollar, one vote metric D) production effect principle
14 A tariff that has the effect of limiting imports into a small country results in: D A) a net loss to the exporting country but a net gain for the world. B) a net gain for the importing country and the world.
C) no overall change in consumption or the world price of the product that is the subject of the tariff.
D) a net loss to the importing country and the world.
15 ____________________ of a tariff shows the loss to consumers of an importing nation because of the reduction in total consumption of the product subject to the tariff. C A) Production effect B) Profit effect
C) Consumption effect D) Long term effect
16 The percentage by which the entire set of a nation's trade barriers raises the affected industry's value added per unit of output is identified as the industry's ____________________. B A) net added value gain.
B) effective rate of protection. C) gross added value gain. D) value at risk.
17 ____________________ is defined as the extra cost of shifting to more expensive domestic production because of the imposition of a tariff and is a deadweight loss that is not made up by any gains resulting from the imposition of that tariff. A A) Production effect of a tariff B) Consumption effect of a tariff C) Effective rate of protection D) Net profit effect of a tariff
18 The assumption that any feasible change in demand for an import in a country is so small that it has almost no effect on the world market for that product is called the: C A) consumption effect.
B) one-dollar one-vote metric. C) small country assumption. D) prohibitive tariff effect.
19 If a country's share of the world market for an imported product is large enough that the country's buying can affect the world price of that product unilaterally, that country has: D A) monopoly power.
B) the power to set tariffs at any rate.
C) the power to completely exclude the importation of that product. D) monopsony power.
20 A tariff rate that creates the largest net gain for the country imposing the tariff is called the: C A) maximum allowable tariff. B) minimum possible tariff. C) nationally optimal tariff. D) politically correct tariff.
第九章
1 If Japan and Australia enter into a voluntary export restraint (VER) agreement and Australia agrees to limit its exports to Japan, then we would expect that the VER's revenue effect would accrue to: D
A) the Japanese government. B) the Australian government. C) Japanese producers. D) Australian producers.
2 A(n) ____________________ is a government policy of an importing country that requires importers to place some part of the value of intended imports with the government before the imports are allowed in the country. A A) advance deposit requirement B) import license requirement
C) government procurement requirement D) tariff-quota
3 When an import quota is imposed and import licenses are auctioned off, the revenue effect of the quota goes to: C A) domestic producers. B) domestic consumers. C) the government. D) foreign producers.
4 The lifting of a voluntary export restraint (VER) by the foreign exporting country would benefit: A
A) consumers in the importing country. B) government in the importing country. C) producers in the importing country. D) all of the above.
5 If a government allocates import licenses for free to firms or individuals without competition, application, or negotiation, the licenses are allocated on the basis of: B A) quota rights.
B) fixed favoritism.
C) monopolistic competition. D) corruption.
6 When a country allows imports into the country at a low or zero tariff up to a specified quantity of goods and then imposes a higher tariff on imports above that specified quantity, that country is employing: D A) a mixing requirement. B) an advance deposit system. C) a fixed favoritism system. D) a tariff-quota.
7 The World Trade Organization was created in 1995 to: A
A) oversee global rules of government policy toward international trade.
B) provide a forum where trade disputes can be litigated and decided by a body that can directly enforce its decisions.
C) encourage the imposition of non-tariff barriers instead of imposition of tariffs. D) all of the above.
8 Section 301 of the Trade Act of 1974 allows the president to: B A) appeal to the WTO to end illegal trade restrictions.
B) unilaterally use threats of retaliation to open foreign markets for U.S. trade. C) impose import restrictions to protect U.S. manufacturers. D) allocate import licenses on the basis of fixed favoritism.
9 When a country imposes high import barriers to protect domestic industries from competition from imports, the protected industries: B
A) gain higher income and the overall costs of the import barriers are very low. B) gain higher income but the overall costs of the import barriers are also high.
C) do not usually gain higher income but the overall costs of the import barriers are low. D) do not usually gain higher income and the overall costs of the import barriers are high.
10 A nontariff barrier is any policy that: C A) limits imports into a particular country.
B) limits imports and that is illegal under WTO regulations. C) is used to limit imports other than a simple tariff. D) results in a limitation of imports or exports.
11 The international agreement under which member countries pursued 8 rounds of negotiations to lower barriers to trade between 1947 and 1993 is: B A) WTO. B) GATT.
C) the Uruguay Round. D) NTB.