EU33L2
1
Since 1960, the volume of UK international trade as a percentage of GDP has ___________________.
remained constant
fallen by half
more than doubled
steadily decreased
2
The Uruguay Round of the GATT created the ______________.
World Trade Organization
North American Free Trade Agreement
International Monetary Fund
highest tariffs since World War II
3
The country of Alpha can produce 2 packets of cookies at a cost of 4 boxes of chocolates. If Beta can produce 2 boxes of chocolates at a cost of 2 packets of cookies, then __________.
Beta has a comparative advantage in both chocolates and cookies
Alpha has a comparative advantage in producing cookies
Alpha has a comparative advantage in producing chocolates
Beta has a comparative advantage in producing chocolates
4
The country of Alpha can produce 2 packets of cookies at a cost of 4 boxes of chocolates. If Beta can produce 2 boxes of chocolates at a cost of 2 packets of cookies, then __________.
neither country will benefit from trade
only Beta will benefit from trade
both countries will benefit from trade
only Alpha will benefit from trade
5
Two examples of nontariff barriers are ____________________.
import taxes and export taxes
voluntary export restraints and import taxes
quotas and voluntary export restraints
quotas and import taxes
6
The proposition that protection is necessary to allow an infant industry to grow into a mature industry so that it can compete in world markets is the ______________________.
new industry proposition
growth proposition
infant-maturity argument
infant-industry argument
7
Dumping occurs when a foreign firm _____________________.
pollutes international waters
disposes of waste material internationally
sells inferior output to foreigners
sells its exports at a lower price than its cost of production
8
A tariff _______ the quantity of the good imported and _______ the domestic price of the imported good.
decreases; decreases
increases; greatly increases
does not change; increases
decreases; increases
9
The argument that protection ______________________.
allows us to compete with cheap foreign wages is true
is necessary for infant industries is true
saves jobs is flawed
penalizes poor environmental standards is true
10
__________ is a price support programme for farmers in the European Union and acts as a tariff on non-EU agricultural products.
The GATT
APEC
The Common Agricultural Policy
SEM