ECON 2

1.

1 point

The goal of the (WTO, EU) is to foster freer trade through negotiated agreements.

2.

1 point

Changes in real GDP reflects the country's ________.

population

growth

stability

3.

1 point

Which type of trade agreements involve partial non reciprocal preferences?

FTAs (Free trade agreements)

PTAs (Preferential trade agreements)

4.

1 point

What is the effect of an import tariff?

is to increase the price of the good in the importing country

allow the importing government to increase its revenues

hurt domestic consumers

5.

1 point

Export subsidies are subsidies granted by the governments to producers who (import/export) their products to foreign markets.

6.

1 point

(Trade creation, Trade diversion) occurs when a country replaces high-cost domestic production with low-cost import from a member country of a shared free-trade agreement

7.

1 point

A (customs union/common market) allows free movements of goods and services among participating nations and applies a common trade policy with non-participating countries.

8.

1 point

What are the five principles of the World Trade Organization (WTO)?

Fair competition

Moving toward freer trade though regulations

Trade without discrimination

Increasing the demand of foreign products

Development and economic reform in least developed countries

Binding tariffs and transparency

Creating more revenue for country's governments

9.

1 point

The GATT (General Agreement on Tariffs and Trade) established rules that governed international trade of stocks and bonds.

True

False

10.

1 point

FTAs establishes two types of trading arrangements; ___________ and a __________.

11.

1 point

Which practices are considered unfair trading?

Dumping

Import quotas

Tariffs

Export subsidies

12.

1 point

GDP is the market value of all final goods and services within a country in a given time period.

True

False

13.

1 point

What are the effects of an import quota?

reducing the supply of a good in the importing country

higher domestic price of the imported good

hurting domestic consumers and benefits domestic producers in the importing country

importing country collects revenue

14.

1 point

(Real GDP, GDP per capita) is used to capture an individual's well being.

15.

1 point

Examples of non tariff regulations include

import quotas

bureaucratic procedures

local content requirements

import tariffs

16.

1 point

Countervailing duties job is to neutralize the effects of (import tariffs/ export subsidies).

17.

1 point

The WTO and the GAAT are some examples of ___________.

regionalism

multilateralism

18.

1 point

(Nontariff/tariff) regulations comprise of an assortment of government policies intended to either reduce imports or increase exports.

19.

1 point

GNP stands for?

Gross Nominal Product

Gross National Product

20.

1 point

What is the difference between FTAs and RTAs?

Only FTAs establish preferential treatment

RTAs require close geographical proximity

FTAs are trade agreements

21.

1 point

A subsidy is a positive tax.

True

False

22.

1 point

The expenditure approach is:
GDP= C+I+__+(X-M)

23.

1 point

Transfer payments are included in GDP.

True

False

24.

1 point

What is NOT included in GDP?

Inventories

Buying a new stock

Buying a new tractor

Purchase of a new home

25.

1 point

For small countries the tax is (forward/backward) shifted to domestic consumers.

26.

1 point

Import quotas reduced the quantity of imports compared to import tariffs.

True

False

27.

1 point

A (small, large) country is defined as one whose consumption/ production cannot affect the world price of the good it imports.

28.

1 point

There's a Toyota plant in Kentucky. and there's a General Motors Plant in South Africa. Which (General Motors Plant, Toyota Plant) would be counted in the country's GNP?

29.

1 point

Dumping refers to selling a good or service in another country at a price (below/above) the cost of production.

30.

1 point

A tariff imposed by a large country (reduces/increases) the world price of the imported good.

31.

1 point

VERs stand for _____________.

32.

1 point

What does (X-M) stand for?

investment spending

consumer spending

government spending

net exports

33.

1 point

The WTO was established during the Uruguay round under GATT.

True

False

34.

1 point

What are some types of import quotas?

import tariff

tariff-rate quota

absolute quota

export subsidy

35.

1 point

GDP does not measure a country's output of goods and services.

True

False

36.

1 point

What is a forward-shifted tax?

tax paid by the seller

tax paid by the buyer

37.

1 point

Inflation would inflate (nominal GDP/real GDP).

38.

1 point

Negotiations in the GATT were referred to as _______.

meetings

negotiations

trade meetings

trade rounds

39.

1 point

Under a common market countries allow

allow free movement of good and services

allow unimpeded movement of labor and capital

maintain a common external trade policy

All of the above

40.

1 point

(Trade creation, Trade diversion) occurs when low-cost imports from a non-member country are replaced with high-cost imports from a member country to a shared free-trade agreement

41.

1 point

Import (quota/tariff) is a quantitative limit on the amount of a good that can be imported into a country

42.

1 point

Real GDP is stated in current year prices.

True

False

43.

1 point

PTAs are usually (multilateral/unilateral).

44.

1 point

What is a tariff?

tax imposed on exports traded

tax imposed on imports traded

tax imposed on goods traded across countries

45.

1 point

In an import tariff, a higher price is bad for domestic producers but is good for domestic consumers.

True

False

46.

1 point

__________ is designed to facilitate the free flow of goods and services and to coordinate foreign economic policies between countries in the same geographic region.

Regionalism

Multilateralism

47.

1 point

As a result of an import quota, the importing country does not collect revenue.

True

False

48.

1 point

Which trade agreement removes all, or most, of the trade barriers among participating nations?

FTAs

PTAS

49.

1 point

What is an import tariff?

tax imposed on exports

quantitative limit on the amount of a good that can be imported

tax levied on imports by an importing country

50.

1 point

GDP shows income distribution.

True

False