When one country provides most favored nation status (normal trade relations) for another, it agrees to ?

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

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

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

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

exports to that nation any products that it wants to purchase

To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?

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

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

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

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

The price of radios in Mexico equals $20 and its imports equal 40 radios

Those who argue in favor of import protection generally give the impression that such restricted trade will?

not yield welfare losses for the nation

decrease the level of national security

provide benefits to some particular industry

provide benefits to the entire nation

not yield welfare losses for the nation

The World Trade Organization is sometimes criticized for all of the following reasons except?

it is a puppet of multinational corporations

it reduces the sovereignty of member countries

favors free trade over the quality of the environment

it has no way to solve trade disputes among member countries

it is a puppet of multinational corporations

The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?

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

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

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

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

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

The strongest political pressure for a trade policy that results in higher protectionism comes from?

domestic workers lobbying for import restriction

domestic workers lobbying for export restrictions

domestic consumers lobbying for export restrictions

domestic consumers lobbying for import restrictions

The result of antidumping tariffs is to ?

impose a price ceiling on foreign price in the importing country

increase consumer surplus in the importing country

decrease producer surplus in the importing country

impose a price floor on foreign prices in the importing country

impose a price ceiling on foreign price in the importing country

The effect of the most favored nation (normal trade relations) clause is to ?

maintain a discriminatory structure of tariffs

eliminate all tariffs between countries

increase all tariffs between countries

maintain a nondiscriminatory structure of tariffs

maintain a discriminatory structure of tariffs

Referring to the above, the embargo was mainly resisted by ?

Grain Producers in foreign countries

U.S grains consumers and producers of bread

U.S farmers and grains companies

Grain Producers in foreign countries

Grain consumers in foreign countries

________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?

generalized system of preference

In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?

Export revenues would decrease for U.S producers

Grain prices would rise in the Soviet union

Consumer surplus would decrease for the soviets

Grains prices would rise in the united States

Export revenues would decrease for U.S producers

Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?

General Agreement on Tariffs and Trade

McKinley Agreement on Trade policy

are prohibited by the World Trade Organization

affect international trade but not international financial flows

involve restrictions on imports, but not exports

involve restrictions in imports exports and or financial flows

During the post-world War II era?

NTBs have decreased and tariffs have increased in relative importance

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

NTBs and tariffs have decreased in relative importance

NTBs have increased and tariffs have decreased in relative importance

NTBs have decreased and tariffs have increased in relative importance

Countervailing duties levied by the U.S government are imposed to offset ?

buy national policies of foreign government

foreign dumping of goods in the U.S

subsidies granted to foreign firms that export to the U.S

buy national policies of foreign government

stringent environmental regulations of foreign government s

Concerning dumping, which of the following is true ?

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

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

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

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

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

Antidumping duties applied to imported goods ?

are imposed by industrial countries but not developing countries

are abolished by the World Trade Organization

result in decreases in consumer surplus for domestic households

are imposed by industrial countries but not developing countries

result in lower-priced goods for domestic consumers

All of the following are fundamental to the World Trade Organization except ?

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

bilateral tariff reductions to promote trade liberalization

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

nondiscrimination in trading relationships

the prohibition of import quotas and export quotas

26 + Mcqs in Trade Regulations And Industrial Policies in Economics Page 1 McqOptions

1.	Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
A.	Kennedy Round of 1964-1967
B.	Tokyo Round of 1973-1979
C.	Uruguay Round of 1986-1993
D.	Doha Round of 2003-2007
Answer» D. Doha Round of 2003-2007

Discussion

2.	When one country provides most favored nation status (normal trade relations) for another, it agrees to ?
A.	charge the nation’s products a lower tariff than any other nation’s
B.	charge that nation’s products a tariff rate no higher than that on any other nation
C.	charge that nation’s products a higher tariff than any other nation’s
D.	exports to that nation any products that it wants to purchase
Answer» C. charge that nation’s products a higher tariff than any other nation’s

Discussion

3.	Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?
A.	5 radios
B.	10 radios
C.	15 radios
D.	zero radios
Answer» E.

Discussion

4.	To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?
A.	The price of radios in Mexico equals $60 and its imports equal 30 radios
B.	The price of radios in Mexico equals $30 and its imports equal 30 radios
C.	The price of radios in Mexico equals $40 and its imports equals 20 radios
D.	The price of radios in Mexico equals $20 and its imports equal 40 radios
Answer» C. The price of radios in Mexico equals $40 and its imports equals 20 radios

Discussion

5.	Those who argue in favor of import protection generally give the impression that such restricted trade will?
A.	decrease the level of national security
B.	provide benefits to some particular industry
C.	provide benefits to the entire nation
D.	not yield welfare losses for the nation
Answer» D. not yield welfare losses for the nation

Discussion

6.	The World Trade Organization is sometimes criticized for all of the following reasons except?
A.	it reduces the sovereignty of member countries
B.	favors free trade over the quality of the environment
C.	it has no way to solve trade disputes among member countries
D.	it is a puppet of multinational corporations
Answer» D. it is a puppet of multinational corporations

Discussion

7.	The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
A.	have tariff rates equal to zero suggesting a free trade policy for the United States
B.	have lower tariff rates than the rates that apply to any other country sending goods to the United States
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
D.	have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment
Answer» D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment

Discussion

8.	The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?
A.	international dumping
B.	countervailing duties
C.	Strategic trade policy
D.	export promotion policy
Answer» D. export promotion policy

Discussion

9.	The strongest political pressure for a trade policy that results in higher protectionism comes from?
A.	domestic workers lobbying for import restriction
B.	domestic workers lobbying for export restrictions
C.	domestic consumers lobbying for export restrictions
D.	domestic consumers lobbying for import restrictions
Answer» E.

Discussion

10.	The result of antidumping tariffs is to ?
A.	increase consumer surplus in the importing country
B.	decrease producer surplus in the importing country
C.	impose a price floor on foreign prices in the importing country
D.	impose a price ceiling on foreign price in the importing country
Answer» D. impose a price ceiling on foreign price in the importing country

Discussion

11.	The organization that currently establishes rules of conduct for firms engaging in international trade is the ?
A.	World Bank
B.	International Trade Commission
C.	Department of justice
D.	World Trade Organization
Answer» E.

Discussion

12.	The institutional framework developed in 1947 to promote trade liberalization is known sa?
A.	the WTO
B.	the GATT
C.	the IMF
D.	the World Bank
Answer» C. the IMF

Discussion

13.	The effect of the most favored nation (normal trade relations) clause is to ?
A.	eliminate all tariffs between countries
B.	increase all tariffs between countries
C.	maintain a nondiscriminatory structure of tariffs
D.	maintain a discriminatory structure of tariffs
Answer» D. maintain a discriminatory structure of tariffs

Discussion

14.	Referring to the above, the embargo was mainly resisted by ?
A.	U.S grains consumers and producers of bread
B.	U.S farmers and grains companies
C.	Grain Producers in foreign countries
D.	Grain consumers in foreign countries
Answer» C. Grain Producers in foreign countries

Discussion

15.	________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
A.	generalized system of preference
B.	countervailing duty
C.	domestic content
D.	safeguards
Answer» E.

Discussion

16.	In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?
A.	Grain prices would rise in the Soviet union
B.	Consumer surplus would decrease for the soviets
C.	Grains prices would rise in the united States
D.	Export revenues would decrease for U.S producers
Answer» D. Export revenues would decrease for U.S producers

Discussion

17.	Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
A.	General Agreement on Tariffs and Trade
B.	World Trade Organization
C.	Smoot Hawley Organization
D.	McKinley Agreement on Trade policy
Answer» B. World Trade Organization

Discussion

18.	Economic sanctions?
A.	are prohibited by the World Trade Organization
B.	affect international trade but not international financial flows
C.	involve restrictions on imports, but not exports
D.	involve restrictions in imports exports and or financial flows
Answer» E.

Discussion

19.	During the post-world War II era?
A.	Nontariff barriers (NTBs) and tariffs have increased in relative importance
B.	NTBs and tariffs have decreased in relative importance
C.	NTBs have increased and tariffs have decreased in relative importance
D.	NTBs have decreased and tariffs have increased in relative importance
Answer» D. NTBs have decreased and tariffs have increased in relative importance

Discussion

20.	Countervailing duties levied by the U.S government are imposed to offset ?
A.	foreign dumping of goods in the U.S
B.	subsidies granted to foreign firms that export to the U.S
C.	buy national policies of foreign government
D.	stringent environmental regulations of foreign government s
Answer» C. buy national policies of foreign government

Discussion

21.	Concerning dumping, which of the following is true ?
A.	predatory dumping represents the most common form of dumping by U.S firms
B.	U.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare
C.	dumping can never be a profit-maximizing strategy for U.S firms to pursue
D.	U.S firms rarely if ever, engage in distress dumping or persistent dumping
Answer» C. dumping can never be a profit-maximizing strategy for U.S firms to pursue

Discussion

22.	Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?
A.	decreases, decreases
B.	decreases, increases
C.	increases, decreases
D.	increases, increases
Answer» C. increases, decreases

Discussion

23.	________ are quotas that result in a total prohibition of trade?
A.	embargoes
B.	tariff-rate quotas
C.	voluntary export restraints
D.	nontariff barriers
Answer» B. tariff-rate quotas

Discussion

24.	Antidumping duties applied to imported goods ?
A.	are abolished by the World Trade Organization
B.	result in decreases in consumer surplus for domestic households
C.	are imposed by industrial countries but not developing countries
D.	result in lower-priced goods for domestic consumers
Answer» C. are imposed by industrial countries but not developing countries

Discussion

25.	All of the following are fundamental to the World Trade Organization except ?
A.	bilateral tariff reductions to promote trade liberalization
B.	the use of the most-favored nation clause (normal trade relations)
C.	nondiscrimination in trading relationships
D.	the prohibition of import quotas and export quotas
Answer» B. the use of the most-favored nation clause (normal trade relations)

Discussion

26.	According to the United States ____ is the number one violator of intellectual property rights
A.	Canada
B.	Australia
C.	Japan
D.	China
Answer» E.

Discussion

Explore topic-wise MCQs in Economics.

Which round of international trade negotiations resulted in the creation of the World Trade Organization ?

When one country provides most favored nation status (normal trade relations) for another, it agrees to ?

Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?

To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?

Those who argue in favor of import protection generally give the impression that such restricted trade will?

The World Trade Organization is sometimes criticized for all of the following reasons except?

The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?

The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?

The strongest political pressure for a trade policy that results in higher protectionism comes from?

The result of antidumping tariffs is to ?

The organization that currently establishes rules of conduct for firms engaging in international trade is the ?

The institutional framework developed in 1947 to promote trade liberalization is known sa?

The effect of the most favored nation (normal trade relations) clause is to ?

Referring to the above, the embargo was mainly resisted by ?

________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?

In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?

Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?

Economic sanctions?

During the post-world War II era?

Countervailing duties levied by the U.S government are imposed to offset ?

Concerning dumping, which of the following is true ?

Compared to what occurred under free trade, Mexico’s producer surplus and consumer surplus as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

________ are quotas that result in a total prohibition of trade?

Antidumping duties applied to imported goods ?

All of the following are fundamental to the World Trade Organization except ?

According to the United States ____ is the number one violator of intellectual property rights

Explore topic-wise MCQs in Economics.

Which round of international trade negotiations resulted in the creation of the World Trade Organization ?

When one country provides most favored nation status (normal trade relations) for another, it agrees to ?

Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?

To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?

Those who argue in favor of import protection generally give the impression that such restricted trade will?

The World Trade Organization is sometimes criticized for all of the following reasons except?

The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?

The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?

The strongest political pressure for a trade policy that results in higher protectionism comes from?

The result of antidumping tariffs is to ?

The organization that currently establishes rules of conduct for firms engaging in international trade is the ?

The institutional framework developed in 1947 to promote trade liberalization is known sa?

The effect of the most favored nation (normal trade relations) clause is to ?

Referring to the above, the embargo was mainly resisted by ?

________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?

In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?

Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?

Economic sanctions?

During the post-world War II era?

Countervailing duties levied by the U.S government are imposed to offset ?

Concerning dumping, which of the following is true ?

Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

________ are quotas that result in a total prohibition of trade?

Antidumping duties applied to imported goods ?

All of the following are fundamental to the World Trade Organization except ?

According to the United States ____ is the number one violator of intellectual property rights

Compared to what occurred under free trade, Mexico’s producer surplus and consumer surplus as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?