Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / The largest free trade area in the world currently is South America b.Europe

The largest free trade area in the world currently is South America b.Europe

The largest free trade area in the world currently is

a.South America

b.Europe

c.Australia

d.Africa

e.North America

112.              Since the 1930s, average U.S. tariff rates on imports have

a.risen dramatically

b.risen slowly

c.declined dramatically

d.declined slowly

e.remained about the same

113.              There is a strong consensus among economists in favor of free trade. Governments
                            appreciate the reasons for free trade as well but they may sometimes restrict trade

because

a.their absolute advantage is greater than their comparative advantage

b.their comparative advantage is greater than their absolute advantage

c.the trade generates negative gains

d.they may want to protect infant industries

e.they prefer dumping to trade

114.              A high percentage of Canada’s GDP is generated by the production and export of wheat.  
                            That’s both good news and bad news for Canada. The good news is

a.that other countries have less of a target to retaliate on but the bad news is that they
are most likely to retaliate

b.that Canada can concentrate on principally one good but the bad news is that its
comparative advantage changes when its absolute advantage changes

c.that Canada can concentrate on principally one good but the bad news is that its
absolute advantage changes when its comparative advantage changes

d.that Canada gets substantial gains from trade but the bad news is that other countries
may retaliate against all Canadian exports

e.that Canada gets substantial gains from trade but the bad news is that price changes
in wheat can erode much of the gains

115.              Less-developed countries are more justified in  using this argument for trade restrictions  
                            than advanced countries.

a.retaliation

b.national security

c.cheap foreign labor

d.infant industries

e.unionized foreign labor

116.              The U.S. broom industry is more justified in using this argument for trade restriction
                            than the Mexican broom industry.

a.retaliation

b.cheap foreign labor

c.national security

d.infant industries

e.diversification

117.              A high percentage of Canada’s GDP is generated by the production and export of wheat. 
                            As a result, the Canadian Parliament might be inclined to vote to restrict trade based on

the

a.cheap foreign labor argument

b.antidumping argument

c.national security argument

d.infant industries argument

e.diversity of industry argument

118.              A tariff is a tax on ________ goods that is designed to ________.

a.exported; protect domestic industries

b.exported; hurt foreign industries

c.imported; make domestic consumers pay more

d.imported; protect domestic industries

e.domestic; discourage imports

119.              Let’s play Jeopardy. The answer is: Because more goods are produced at lower prices
                            and no country loses. The question is:

a.Why do countries engage in dumping?

b.Why do countries retaliate?

c.Why do nations trade?

d.Why is comparative advantage preferred to absolute advantage?

e.Why is absolute advantage preferred to comparative advantage?

120.              The idea behind reciprocity between two trading countries is that they

a.share the gains from trade equally

b.eliminate quotas against each other

c.eliminate tariffs against each other

d.use the same set of trading practices with respect to each other

e.agree to retaliate against other trading countries

Feb 11 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions