Final study guide

Which of the following arguments states that a country should restrict trade to protect industries that provide social usefulness, such as domestic R&D? Spillover effects Question 2 World Bank primarily loans money to countries that need short-term credit to shore-up their economies. Question 3 One form of protectionism is to place limit on the amount of an incoming product. This is called Import quota Question 4 Unilateralism refers to a political movement that espouses economic liberalism as a means of promoting economic development and securing political liberty.

True Question 5 Tariffs, import quotas, and regulatory barriers are forms of protectionism that “unfairly” promote domestic goods in foreign markets. False Question 6 Which of the following is a measure of income disparity? Gin index Question 7 The “reciprocity’ principle requires each WTFO member apply the same condition on all trade with other WTFO members. Question 8 A major policy advance by unilateralism is free trade which means the removal of trade barriers, like tariffs, subsidies, and regulatory trade barriers.

Question 9 A major argument against regional trading blocs is that economic interdependence creates disincentives for political cooperation and increases potential for violent confrontation. Question 10 MIFF is a development bank that focuses on macroeconomic performance of world economies as well as on macroeconomic and financial sector policy. Question 1 1 According to the lecture, which of the following is NOT a reason to Globalize?

Increment of world population Question 12 (Economic) unilateralism tends to promote: All of the above The demise (destruction) of inefficient industries Innovation An edge for companies and countries rich in capital Question 13 According to the Video Case “U. S. Farmers/CAFTAN,” which of the following groups of people are in support of CAFTAN? Corn and dairy farmers Question 14 Customs Union has a higher degree of economic integration than Common Market. Question 15 Which of the following is/are true of the European Commission?

It is the equivalent of the executive branch for the EX. It is based in Brussels The Commission President is selected in consultation with all members for five years Question 16 under NONFAT, the losing party In a trade dispute is paid Damages and costs by the offending country Question 17 The World Trade Organization was called GOAT until 1975 Question 18 According to the lecture, how many member countries does the European Union have now? 27 Question 19 The principle of the “fair trade” protectionism is to design trade policies to protect the vulnerable around the world.

Question 20 China’s economic reform in recent three decades has adopted many policies advanced by unilateralism. According to the lecture, China has NOT yet adopted which of the following policies? Competitive exchange rate Question 21 The two main branches of the WEB are the BIRD and the IDA. The BIRD helps the poorest countries and the IDA assists with low interest loans for middle income countries. Question 22 Who was the founding leader of the Republic of China? Sun Hat-Seen Question 23 Generally speaking, the Inalienable regime is market-driven as compared to the communist regime, which is largely state-driven economy.

Question 24 In general, inalienable economist proponents argue that: Free trade is best in the long term for the economic well-being of society as a whole Market imperfections exist and need to be remedied as they occur Most protectionist policies are distortions of the market based on self-interests of small groups at the expense of society as a whole Question 25 Euro is the common currency of European Union. Currently, all EX. member states have adopted Euro. False Question 26 A strong inalienable system requires a strong democratic system.

Question 27 International trade and financial organizations have made great progress in improving representatives. They have made modest progress in technical accountability. Question 28 A subsidy for a fledgling industry is an example of protectionism. Question 29 Which of the following is NOT a policy advanced by unilateralism? Exchange control Question 30 The European Court of Justice is roughly equivalent to our Supreme Court. The European Court Of Auditors is roughly equivalent to our GAO (General Accountability Office) and COB (Congressional Budget Office).

Question 31 Which of these arguments is used against unilateralism? Environmental destruction is enhanced by it The top 500 wealthiest people in the world have more wealth than the bottom half Income disparity has been growing since WI Question 32 According to the lecture, the economist David Richard revealed that trade provides benefits to both countries, even when the relative costs of producing all products are higher in one country than the other. Question 33 The economist, David Richard, is associated with which of the following economic theories?

All of the above Specialization Comparative advantage Absolute advantage Question 34 Some negative impact(s) of IIS has/have been which of the following? Of the above Increasing the gap be;en rich and poor Fostering immense ecological and environmental damage All Callous displacement of vast numbers of indigenous people in developing countries from their original homes and communities Question 35 Which of the following has (have) been a historical problem(s) with international trade and financial organizations?

Equality of representation Secretiveness Lack of accountability Question 36 All European Union member states agree to transform themselves into one entity by combining both political and economic integration. Question 37 to help select disadvantaged groups such as farmers? Distribution Question 38 By tradition, the President of the World Bank is from the nation of the largest shareholder, the United States, while the Chairman of the MIFF is from the European countries. Question 39 Which of the following statements is true?

Economic Union has a higher degree of integration than Customs Union Question 40 Arguments advanced for protectionism do not include: Excess consumption argument Question 41 A major political argument for regional trading blocs is that economic interdependence creates incentives for political cooperation and reduced potential for violent confrontation Question 42 Which of the following types of bank can provide financial stability to national and international systems and act as bailout lender of last resort to prevent the collapse of a financial system?

Central bank Question 43 Currently China has a population of 1. 35 billion Question 44 According to the lecture, which of the following was given as a reason to u rent trend of globalize (or globalization)? The dominance of unilateralism philosophy Question 45 Which of the following is NOT a principle of the WTFO? Equality Question 46 One argument for regional trading blocs states that economic interdependence creates incentives for political cooperation; therefore, it reduces potential for violent confrontation.

Question 47 Dependence theory Views capitalism is too tilted toward the historically advantaged countries who essentially “rig” the system in their favor. The theory more likely represents the views of which of the following countries? Peru Question 48 The primary argument of (political) dependency theory asserts that placing the pursuit of money first tends to ignore our humanity.

False Question 49 The length of major recessions increased in the second half of the twentieth century False Question 50 Which of the following is an argument against free trade? Select trade policies should be designed by reason rather than the market when market is limited. Question 51 One argument for regional trading blocs is that integration is easy to achieve and sustain, because all countries aware the potential economic benefits of closer economic integration.