1 - Texas Tech University



1.  Countries seek protection to promote industrialization because the type of production does all of these except ...?

 

a.  Brings faster growth than agriculture

b.  Brings in investment funds

c.  Diversifies the economy

d.  Develops the largest industries

 

 

2.  Dumping is ....?

 

a.  putting toxic chemicals into the oceans and streams

b. exporting below cost or below their home country price.

c.  what you do in privacy

d.  importing high luxury goods at low cost to the consumer.

 

 

3.  Which country would have the most effect on trade restriction retaliation?

 

a.  Japan

b.  Czech Republic

c.  Zimbabwe

d.  Chile

 

 

4.  The infant industry argument holds that ...?

 

a.  the government should provide subsidies to all families that have more than two children

b.  corporations should develop smaller subsidiaries of its company in different markets to stimulate economy

c.  a government should shield an emerging industry from foreign competition by guaranteeing it a large share of the domestic market until it is able to compete on its own

d.  the economy is reliant on new niche markets to develop to continue consumer interest and demand in turn increasing the Gross Domestic Product and decreasing unemployment.

 

 

5.  Export restrictions may do all of these except...?

a.  keep up world prices

b.  decrease foreign prices

c. require more controls to prevent smuggling

d.  lead to substitution

 

 

Answers:

 

1. D

2.  B

3.  A

4.  C

5.  B

1) All are non-economic rationales except for:

a) Maintain essential industries

b) Deal with unfriendly countries

c) Promote industrialization

d) Preserve national identity

2) “A government should shield an emerging industry from foreign competition by guaranteeing it a large share of the domestic market until it is able to compete on its own.” What argument holds that?

a) Protectionism

b) Tariff and Quota Treaty

c) Promoting industrialization

d) Infant-industry argument

3) Countries with a large manufacturing base generally have higher________________ than those that do not.

a) Per capita income

b) Labor force

c) Natural resources

d) Higher taxes

4) Export restrictions may:

a) Keep up world prices

b) Lead to importation

c) Require more controls to prevent smuggling

d) Give producers less incentive to increase output

5) Dumping is:

a) Selling it below cost

b) Selling it below their home-country price

c) Giving it for free

d) A & B

Answers:

1) C

2) D

3) A

4) B

Q1. The unemployed can form an effective pressure for ______ restrictions.

A. Export

B. Import

C. Buy

D. Sell

Q2. A possible outcome of import restrictions include all but which of the following?

A. Higher Prices

B. Lower Taxes

C. Such costs should be compared with those of unemployment

D. None of the above

Q3. When a country shifts from agriculture to industry, which of the following may happen?

A. Demands on social and political services in cities may increase.

B. Output increases if the marginal productivity of agriculture workers is very low

C. Development possibilities in the agriculture sector may be overlooked

D. All of the above.

Q4. Industrialization emphasizes?

A. Products to sell domestically

B. Products to import

C. A decrease in manufactured products

D. Economic weariness

Q5. Tariffs may be levied?

A. On goods entering, leaving, or passing through a country

B. For protection on revenue

C. On a per unit or value basis

D. All of the above

Answers:

1) B

2) B

3) D

4) A

5) D

1. Which famous American presented the infant-industry argument in 1792?

a. Thomas Jefferson

b. Henry Adams

c. Alexander Hamilton

d. Benjamin Franklin

2. Industrialization and nation building can go hand in hand by

a. building infrastructure

b. boosting the skills of the workforce

c. advancing rural development

d. all of the above

3. The argument that states that companies an industries are entitled to the same access to foreign markets as foreign industries and companies to the markets.

a. industrialization argument

b. infant-industry argument

c. comparable access argument

d. essential-industry argument

4. Dumping is the term used when:

a. Companies export below cost or below their home-country price

b. Companies export above cost or above their home-country price

c. Companies export at the same price as their home-country price

d. Companies receive free export tariffs from their home countries

5. A Tariff may be levied on:

a. goods entering, leaving, or passing through a country

b. for protection or revenue

c. On a per unit or value basis

d. All of the above

Answers: 1--- c 2.)---d 3.)----c 4.)---a 5.) ---d

1. After the elimination of the MFA (Multifiber Agreement), what country had the most market share?

a) Hong Kong

b) Germany

c) China

d) Belgium

2. All countries seek to influence

a) the community

b) their peers

c) competition

d) trade

3. What is the most effective pressure group?

a) females

b) the unemployed

c) males

d) bankers

4. Which of the following is an economic rationale for government intervention in trade?

a) maintain essential industries

b) prevent unemployment

c) preserve national identity

d) deal with unfriendly countries

5. Import restrictions may:

a) get foreign producers to lower their prices

b) require more controls to prevent smuggling

c) give producers less incentive to increase output

d) keep domestic prices down by increasing domestic supply

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