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58.
The optimum tariff is most likely to apply to
- a small tariff imposed by a small country.
- a small tariff imposed by a large country.
- a large tariff imposed by a small country.
- a large tariff imposed by a large country.
- None of the above.
The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes
- is an argument supporting free trade and non-governmental involvement.
- is an argument supporting the use of an optimum tariff.
- is an argument supporting the use of market failures as a trade-policy strategy.
- is an argument rejecting free trade and supporting governmental involvement.
- None of the above.
The domestic market failure argument is a particular case of the theory of
- the optimum, or first-best.
- the second best.
- the third best.
- the sufficing principle.
- None of the above.
61.
The median voter model
- works well in the area of trade policy.
- is not intuitively reasonable.
- tends to result in biased tariff rates.
- does not work well in the area of trade policy.
- None of the above.
62.
The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
- the lack of political involvement of the public.
- the power of advertisement.
- the problem of collective action.
- the basic impossibility of the democratic system to reach a fair solution.
- None of the above.
63.
A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is know as a(n)
- international dumping policy.
- countervailing tariff policy.
- beggar thy neighbor policy.
- trade adjustment assistance policy.
- None of the above.
64.
Countervailing duties are intended to neutralize any unfair advantage that foreign exporters might gain because of foreign
- tariffs.
- quotas.
- Local-Content legislation
- None of the above.
65.
Export embargoes cause greater losses to consumer surplus in the target country
- the lesser its initial dependence on foreign produced goods.
- the more elastic is the target country's demand schedule.
- the more elastic is the target country's domestic supply.
- the more inelastic the target country's supply.
- None of the above.
66.
The World Trade Organization provides for all of the following except
- the usage of the most favored nation clause.
- assistance in the settlement of trade disagreements.
- bilateral tariff reductions.
- multilateral tariff reductions.
- None of the above.
68. Under U.S. commercial policy, the escape clause results in
- temporary quotas granted to firms injured by import competition.
- tariffs that offset export subsidies granted to foreign producers.
- a refusal of the U.S. to extradite anyone who escaped political oppression.
- tax advantages extended to minority-owned exporting firms.
- tariff advantages extended to certain Caribbean countries in the U.S. market.
PartⅣ. Each term in the left column is related to a particular content in the right column, please match each pair with a line.
1.
| Nontraded goods | Price effect of tariff or export subsidy |
| Specific factor | Biased growth |
| Optimum tariff | Nontariff barrier |
| Collective action | Real exchange rate |
| Metzler paradox | Income distribution |
| Rybczynski effect | The terms of trade argument for a tariff |
| Local content requirement | Trade politics |
| Intertemporal trade | The instruments of trade policy |
| Harris-Todaro problem | Wage differentials argument |
| Efficiency loss | International borrowing and lending |
| Leontief paradox | Economies of scale |
| Terms of trade | Voluntary export restraint |
| Specific rule | Custom union |
| Learning curve | Factor-proportions theory |
| Intraindustry trade | Standard trade model |
| Quota rents | Domestic market faiture |
| Trade diversion | Dynamic economics of scale |
| Import-substituting industrialization | Tariff |
| First movement advantage | Strategic trade policy |
| Terms of trade gain | Infant industry argument |
PartⅤ.
Explain the following terms(Put the answers onto the blank exam paper) .
pauper labor argument
Stolper-Samuelson effect
Rybczynski effect
Metzler paradox
dynamic increasing returns
intertemporal trade
intertemporal comparative advantage
terms of trade gain
trade diversion
collective action
PartⅥ.
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