ECO 305 Week 6 Quiz – Strayer
Click on the Link Below to
Purchase A+ Graded Course Material
Quiz 5 Chapter 8
CHAPTER 8
REGIONAL TRADING ARRANGEMENTS
MULTIPLE CHOICE
1. The
European Union is primarily intended to permit:
a. Countries to adopt scientific tariffs
on imports
b. An agricultural commodity cartel within
the group
c. The adoption of export tariffs for
revenue purposes
d. Free movement of resources and products
among member nations
2. Which
of the following represents the stage where economic integration is most
complete?
a. Economic union
b. Customs union
c. Monetary union
d. Common market
3. Which
of the following represents the stage where economic integration is least
complete?
a. Free trade area
b. Monetary union
c. Common market
d. Customs union
4. Customs
union theory reasons that the formation of a customs union will decrease
members' real welfare when the:
a. Trade diversion effect exceeds the
trade creation effect
b. Trade production effect exceeds the
trade consumption effect
c. Trade consumption effect exceeds the
trade production effect
d. Trade creation effect exceeds the trade
diversion effect
5. Which
economic integration scheme is solely intended to abolish trade restrictions
among member countries, while setting up common tariffs against nonmembers?
a. Economic union
b. Common market
c. Free trade area
d. Customs union
6. By
1992 the European Union had become a full-fledged:
a. Economic union
b. Monetary union
c. Common market
d. Fiscal union
7. Which
device has the European Union used to equalize farm-product import prices with
politically determined European Union prices, regardless of shifts in world
prices?
a. Variable levies
b. Import quotas
c. Import subsidies
d. Domestic content regulations
8. Which
trade instrument has the European Union used to insulate its producers and
consumers of agricultural goods from the impact of changing demand and supply
conditions in the rest of the world?
a. Domestic content regulations
b. Variable import levies
c. Voluntary export quotas
d. Orderly marketing agreements
9. Assume
that the formation of a customs union turns out to include the lowest-cost
world producer of the product in question. Which effect could not occur for the
participating countries?
a. Trade creation-production effect
b. Trade creation-consumption effect
c. Trade diversion
d. Scale economies and competition
10. Which
organization of nations permits free trade among its members in industrial
goods, while each member maintains freedom in its trade policies toward
non-member countries?
a. European Union
b. Benelux
c. Council for Mutual Economic Assistance
d. North American Free Trade Association
11. Which
of the following organizations is considered a regional trading arrangement?
a. Organization of Petroleum Exporting
Countries
b. North Atlantic Treaty Organization
c. Benelux
d. International Tin Agreement
12. When
products from high-cost suppliers within a customs union replace imports from a
low-cost nation that is not a member of the customs union, there exist(s):
a. Dynamic welfare losses
b. Dynamic welfare gains
c. Trade creation
d. Trade diversion
13. Which
form of economic integration occurs when participating countries abolish
tariffs on trade among themselves, establish a common tariff on imports from
nonmembers, and permit free movement of capital and labor within the organization?
a. Free trade area
b. Economic union
c. Common market
d. Monetary union
14. A
static welfare effect resulting from the formation of the European Union would
be:
a. Economies of scale
b. Trade diversion
c. Investment incentives
d. Increased competition
15. A
dynamic welfare gain resulting from the formation of the European Union would
be:
a. Trade diversion
b. Trade creation
c. Diseconomies of scale
d. Economies of scale
16. Which
organization was founded in 1957 whose objective was to create an economic
union among its members?
a. General Agreements on Tariffs and Trade
b. Organization of Economic Cooperation
and Development
c. European Union
d. Latin American Free Trade Association
17. The
common agriculture policy of the European Union has supported European farmers
via:
a. Export tariffs and domestic content
regulations
b. Variable levies and voluntary export
agreements
c. Content regulations and export
subsidies
d. Export subsidies and variable levies
18. Which
nation is not a member of the North American Free Trade Association?
a. Canada
b. Greenland
c. Mexico
d. United States
19. Suppose
a communist country agrees to pay for delivery of machinery with goods produced
by the machinery. This arrangement refers to:
a. Countertrade
b. International commodity agreements
c. Coproduction agreements
d. Trade diversion
20. NAFTA
is a:
a. Monetary union
b. Free trade area
c. Common market
d. Customs union
21. Under
the European Union's common agricultural policy, a variable import levy equals
the:
a. Amount by which the EU's support price
exceeds the world price
b. Amount by which the world price exceeds
the EU's support price
c. Support price of the EU
d. World price
Comments
Post a Comment