World Politics Interests Interactions Institutions 2nd Edition By Jeffry A. -David A- Test Bank

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World Politics Interests Interactions Institutions 2nd Edition By Jeffry A. -David A- Test Bank

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WITH ANSWERS

World Politics Interests Interactions Institutions 2nd Edition By Jeffry A. -David A- Test Bank

Chapter 6

Violence by Nonstate Actors: Civil War and Terrorism

Concept Map

  1. Introduction
  2. Afghanistan
  3. Iraq
  4. Al Qaeda
  5. Nonstate actors
  6. Civil War
  7. Motivations
  8. Goals
  9. Grievances

iii. Greed

  1. Clustering
  2. International Factors
  3. Intervention
  4. Bargaining
  5. Preventing Civil Wars

III.  Terrorism

  1. Rationality
  2. Goals
  3. Al Qaeda
  4. Bargaining
  5. Tactics
  6. Preventing Terrorism

Multiple Choice

  1. Which country did the United States invade for hosting Al Qaeda in 2001?
  2. Iraq.
  3. Iran.
  4. Afghanistan.
  5. North Korea.
  6. Pakistan.

ANS: C DIF: Easy REF: Page 215  TOP: Afghanistan MSC: Factual

  1. What was true of both the U.S. invasion of Iraq and that of Afghanistan?
  2. The conventional war between the United States and the host governments was the longest part of the conflict for the United States.
  3. The conventional war between the United States and the host governments was the shortest part of the conflict for the United States.
  4. The United States had no intention of invading either country, but was forced to.
  5. The United States did not have a clear opponent in the initial phase of either conflict.
  6. The United States only fought state military forces in one of the conflicts but not the other.

ANS: B DIF: Easy REF: Pages 21516  TOP: Afghanistan | Iraq MSC: Factual

  1. Which country has NOT faced an attack from Al Qaeda since 2000?
  2. Spain.
  3. England.
  4. Iraq.
  5. The United States.
  6. Germany.

ANS: E DIF: Easy REF: Page 216  TOP: Introduction: Al Qaeda MSC: Factual

  1. How are nonstate actors unlike state actors?
  2. Nonstate actors lack identifiable interests.
  3. Conflict with nonstate actors tends to be cheap for the state.
  4. Institutions cannot be used to resolve the grievances between two states.
  5. Nonstate actors deal with unique concerns about mobilizing their members.
  6. Nonstate actors cannot be fruitfully thought of in the context of a bargaining model.

ANS: D DIF: Easy REF: Pages 21718  TOP: Nonstate Actors MSC: Conceptual

  1. Which example demonstrates a nonstate actor facing a collective action problem?
  2. The United States government trying to convince people to turn out and vote in an upcoming election.
  3. A student group on campus collecting signatures on a petition to stop environmental damage.
  4. Al Qaeda releasing a new video on the Internet.
  5. The Iraqi government collecting taxes from its citizens.
  6. The United Nations releasing a new report on human-rights abuses in the United States.

ANS: B DIF: Easy REF: Page 218  TOP: Nonstate Actors MSC: Applied

  1. Why do violent nonstate actors, such as rebel and terrorist groups, face difficulty mobilizing people to join their cause?
  2. They cannot prove to people that their cause is justified.
  3. People rarely support the use of violence against the state.
  4. They are irrational and do not pursue policies that maximize their welfare.
  5. The cost of participating in the group is often higher than the perceived benefits.
  6. People tend not to realize that joining a rebel group is really in their best interest.

ANS: D DIF: Moderate REF: Page 219  TOP: Nonstate Actors MSC: Conceptual

  1. Which of the following is an example of a civil war?
  2. The United States fighting against the Taliban in Afghanistan.
  3. Spain being attacked by Al Qaeda in Madrid.
  4. Iraqi Security Forces fighting against Shia Islamists in southeastern Iraq.
  5. A border skirmish between Colombia and Venezuela.
  6. Great Britain colonizing the Falkland Islands.

ANS: C DIF: Moderate REF: Page 219  TOP: Civil War MSC: Applied

  1. What is NOT a reason why foreign intervention into civil war is important?
  2. Intervention by a foreign power determines which side of the conflict is legitimate and which side is illegitimate.
  3. Aid from a foreign source can determine the longevity of a civil war.
  4. Intervention from another state can determine which side will win a conflict.
  5. Aid from a foreign government can be fundamental to a rebel movement forming in the first place.
  6. Foreign governments can intervene on behalf of the state to increase the states likelihood of succeeding.

ANS: A DIF: Easy REF: Page 219  TOP: Civil War | Intervention MSC: Conceptual

  1. What is NOT true of the civil war in the Democratic Republic of Congo (DRC)?
  2. The conflict was partly spawned out of the conflict in Rwanda.
  3. Rwanda helped arm a nonstate actor within the DRC.
  4. The rebels were successful in overthrowing the existing government in the DRC.
  5. Twenty-five different rebel groups were involved in the fighting over the course of the conflict.
  6. Neighboring states, afraid of being embroiled in a larger conflict, refused to intervene in the DRC.

ANS: E DIF: Difficult REF: Page 220  TOP: Intervention MSC: Factual

  1. What might be a grievance that mobilizes a civil war?
  2. Rich diamond mines exist in the country.
  3. There is extreme poverty within a country.
  4. The country has a booming oil industry.
  5. The government is too weak to fend off a rebel group.
  6. The government cannot stop a rebel group from growing narcotics to fund its activities.

ANS: B DIF: Moderate REF: Pages 22021  TOP: Grievances | Greed MSC: Applied

  1. Which is not a potential grievance for a rebel group to mobilize around?
  2. Lack of education.
  3. Lack of health care.
  4. Lack of political representation.
  5. Lack of access to natural resource revenue.
  6. Lack of access to native language.

ANS: D DIF: Difficult REF: Pages 22021  TOP: Grievances | Greed MSC: Applied

  1. A separatist rebel group demands:
  2. subnational autonomy over a region.
  3. for a particular region to join another state.
  4. control over the mechanisms of the state.
  5. control over the economic resources of the state.
  6. the ability to create an independent state.

ANS: E DIF: Easy REF: Page 221  TOP: Civil War: Goals MSC: Factual

  1. An irredentist rebel group demands:
  2. subnational autonomy over a region.
  3. for a particular region to join another state.
  4. control over the mechanisms of the state.
  5. control over the economic resources of the state.
  6. the ability to create an independent state.

ANS: B DIF: Moderate REF: Page 221  TOP: Civil War: Goals MSC: Factual

  1. What is true of the Sudanese conflict?
  2. South and North Sudan were marked by religious differences.
  3. South Sudan controlled the major urban centers and wanted to break away from the rural north.
  4. The bulk of the population lived in Southern Sudan.
  5. Most of the oil revenue was controlled by Southern Sudan, leading the Northern Sudanese to be discontent with the distribution.
  6. Northern Sudan felt shut out of the political process of Sudanese politics.

ANS: A DIF: Easy REF: Pages 22223  TOP: Civil War MSC: Factual

  1. South Sudan:
  2. was the first state to be created since the end of the Cold War.
  3. has never been colonized.
  4. was one of over two dozen states to join the international system since the end of the Cold War.
  5. separated peacefully from North Sudan.
  6. has yet to be recognized internationally as a state.

ANS: C DIF: Moderate REF: Page 222  TOP: Grievances MSC: Factual

  1. Which of the following is not a region fighting for independence currently?
  2. Northern Cyprus.
  3. Tibet.
  4. Aceh.
  5. South Ossetia.
  6. Scotland.

ANS: E DIF: Easy REF: Page 222  TOP: Civil War MSC: Applied

  1. Why did Northern Sudan refuse to allow South Sudan to have independence for so long?
  2. South Sudan contained the majority of the countrys oil reserves.
  3. The separatist movement was only supported by a minority in the South Sudanese population.
  4. The independence movement was new and failed to show a commitment to independence.
  5. The South Sudanese were the same ethnic and religious group as the North.
  6. South Sudanese was originally unified by inhabitants of the country.

ANS: A DIF: Easy REF: Pages 22223  TOP: Grievances | Greed MSC: Applied

  1. Greed and grievance:
  2. are both necessary causes for civil war.
  3. are both sufficient causes for civil war.
  4. are both necessary and sufficient causes for civil war.
  5. have no effect on the probability of civil war.
  6. prevent civil war from occurring.

ANS: A DIF: Moderate REF: Pages 22021  TOP: Grievances | Greed MSC: Conceptual

  1. Which of the following countries did not participate in the revolutions of the Arab Spring?
  2. Tunisia.
  3. Iran.
  4. Libya.
  5. Egypt.
  6. Bahrain.

ANS: B DIF: Moderate REF: Page 225  TOP: Motivations MSC: Factual

  1. What is not a factor in explaining the emergence of organized and armed opposition groups?
  2. Features of the groups.
  3. Interests of the groups.
  4. The number of ongoing civil wars.
  5. Features of the country the groups are in.
  6. Characteristics of the international system.

ANS: C DIF: Moderate REF: Pages 22427  TOP: Motivations MSC: Conceptual

  1. What is NOT a group-level explanation for rebel group mobilization?
  2. Cohesion and trust individuals have towards each other.
  3. Shared religion or culture between members.
  4. Easy access to exploitable natural resources.
  5. The ability to harvest and sell black-market goods.
  6. Funding from a neighboring state.

ANS: E DIF: Easy REF: Page 225  TOP: Motivations MSC: Applied

  1. Which of the following demonstrates the contagion hypothesis of civil war?
  2. A civil war in a country may inspire rebels in a neighboring country.
  3. Civil war is a random event, and clustering is likely to occur over large enough samples.
  4. Good institutions in one country deter the rise of civil war in neighboring countries, even if they have bad institutions.
  5. A rebel group may use a neighboring state as a base of operations.
  6. The proclivity of people to use violence is literally a disease.

ANS: A DIF: Moderate REF: Page 230  TOP: Clustering MSC: Applied

  1. What is an alternative to the contagion hypothesis for why civil wars tend to cluster regionally?
  2. A rebellion in one country might inspire like-minded groups in neighboring states to engage in civil war.
  3. Armed groups operating in one country might cross into a neighboring state and engage in violence there.
  4. States finance domestic oppositions in their neighbors territories.
  5. Poor countries are likely to be in similar regions of the world.
  6. Civil wars cause refugees to spread across state boundaries and create conditions that facilitate the emergence of new civil wars.

ANS: D DIF: Difficult REF: Page 230  TOP: Clustering MSC: Conceptual

  1. What is NOT an international factor explaining rebel group mobilization?
  2. A foreign government shares the interests of a rebel group and decides to intervene.
  3. The international system is anarchic.
  4. A foreign government has existing conflict with the state and wants to weaken the states position.
  5. Supporting the rebels is cheaper than other foreign policy alternatives.
  6. A state would rather not directly fight a government and would prefer to use the rebel group as a proxy.

ANS: B DIF: Moderate REF: Pages 23133  TOP: International Factors MSC: Conceptual

  1. A rebel group hiding its true strength is likely to cause what problem for bargaining?
  2. Information asymmetries.
  3. Commitment problems.
  4. Issue indivisibilities.
  5. International intervention.
  6. Brinkmanship bargaining.

ANS: A DIF: Moderate REF: Pages 23334  TOP: Civil War: Bargaining MSC: Applied

  1. While economic downturns typically weaken a states position, they are:
  2. empowering in the long run.
  3. likely to hurt the rebels just as much.
  4. unlikely to have any real effect on bargaining.
  5. usually temporary.
  6. usually mitigated by international intervention.

ANS: D DIF: Moderate REF: Page 234  TOP: Civil War: Bargaining MSC: Conceptual

  1. Economic downturns are likely to cause what kind of bargaining problems for rebels and states?
  2. Information asymmetries.
  3. Commitment problems.
  4. Issue indivisibilities.
  5. International intervention.
  6. Brinkmanship bargaining.

ANS: B DIF: Difficult REF: Pages 23435  TOP: Civil War: Bargaining MSC: Conceptual

  1. Why are rebel groups reluctant to lay down their arms for peace?
  2. They do not know if they will be getting a good deal.
  3. They are not sure how powerful the state really is.
  4. They have other occupations, such as hunting and policing, that requires their weapons.
  5. They would rather be able to sell their weapons to another rebel group in a neighboring state.
  6. They cannot be sure that the government will continue to abide by the deal once they are disarmed.

ANS: E DIF: Moderate REF: Page 233  TOP: Civil War: Bargaining MSC: Conceptual

  1. The majority of civil wars end:
  2. with one side winning the conflict.
  3. in stalemate.
  4. in a negotiated settlement.
  5. with international intervention.
  6. with peacekeeping forces maintaining a settlement.

ANS: A DIF: Easy REF: Page 235  TOP: Civil War: Bargaining MSC: Factual

  1. Which of the following is an example of a rebel group facing a commitment problem?
  2. A state cannot guarantee it will not wipe out a rebel group once they lay down their weapons.
  3. The rebel group refuses to show how strong it really is.
  4. A rebel leader cannot force other rebels to abide by an agreement.
  5. A rebel leader refuses to negotiate with another state.
  6. A rebel leader rejects an offer for autonomy as the group would rather control the whole country instead.

ANS: C DIF: Easy REF: Page 235  TOP: Civil War: Bargaining MSC: Applied

  1. Why does Russia continue to engage in a costly war against Chechnya instead of granting them autonomy?
  2. Russia believes that if appeased, the Chechnyans will just ask for more.
  3. Other potential separatists will then start their own campaigns for independence.
  4. Russia does not have the authority to grant autonomy to republics.
  5. Russia is concerned that Chechnya will not be able to persist on its own.
  6. The value of Chechnyan territory is worth the cost of a bloody war.

ANS: B DIF: Moderate REF: Page 236  TOP: Motivations MSC: Applied

  1. Insurgents:
  2. are primarily concerned in taking military objectives against a conventional army.
  3. are primarily focused on capturing civilian territory.
  4. fight conventional battles against state armies.
  5. rarely wear distinctive uniforms and attempt to blend in with the population.
  6. win by defeating opposing military forces.

ANS: D DIF: Moderate REF: Page 237  TOP: Civil War: Bargaining MSC: Applied

  1. The Taliban in Afghanistan has NOT:
  2. attacked civilians.
  3. attacked from pockets of civilians, hoping the United States will inadvertently kill those civilians in response.
  4. attacked police stations and other government buildings.
  5. offered protection to civilians against U.S. violence.
  6. generally been defeated by U.S. and Afghan forces.

ANS: E DIF: Easy REF: Page 238  TOP: Afghanistan MSC: Factual

  1. In 2006, the U.S. militarys counterinsurgency focus shifted away from:
  2. attempting to win the hearts and minds of the people.
  3. search and destroy missions against insurgents.
  4. providing safe zones for civilians.
  5. creating secure spaces for economic reconstruction.
  6. increasing security by doing joint patrols with army and police forces.

ANS: B DIF: Moderate REF: Page 239  TOP: Afghanistan | Iraq | Preventing Civil Wars MSC: Factual

  1. International efforts help to address fundamental problems in civil wars in all of the follow ways EXCEPT:
  2. providing arms to make up for any disparity between the actors.
  3. resolving commitment problems that occur after a cease-fire.
  4. credibly guaranteeing the safety of disarmed rebels.
  5. reconstructing the economic and political foundations of a country.
  6. monitoring post-conflict elections.

ANS: A DIF: Easy REF: Pages 24041  TOP: International Factors | Civil War: Bargaining MSC: Conceptual

  1. The best way to reduce the likelihood of civil war is:
  2. disarming governments.
  3. disarming rebels.
  4. encouraging economic development and democratization.
  5. preventing other parties from intervening in conflicts.
  6. establishing effective international institutions that can abolish war.

ANS: C DIF: Difficult REF: Pages 24041  TOP: Preventing Civil Wars MSC: Conceptual

  1. Violence by nonstate groups for political ends counts as terrorism against all of the following targets EXCEPT:
  2. civilians.
  3. politicians.
  4. business executives.
  5. soldiers.
  6. police.

ANS: D DIF: Easy REF: Page 242  TOP: Terrorism MSC: Factual

  1. Terrorism is successful by:
  2. coercing targets into concession.
  3. taking over territory through force.
  4. destroying the leadership of a state.
  5. making it impossible for actors to conduct business.
  6. preventing travel in a particular territory.

ANS: A DIF: Moderate REF: Page 242  TOP: Terrorism MSC: Factual

  1. Terrorists:
  2. tend to be moderates.
  3. do not pursue their interests.
  4. lack goals.
  5. are irrational.
  6. are rational.

ANS: E DIF: Easy REF: Pages 24344  TOP: Terrorism: Goals MSC: Factual

  1. The inherent political weakness in terrorist groups generally:
  2. allows them to beat governments.
  3. encourages hierarchical command structures.
  4. encourages decentralized, network-based command structures.
  5. allows them to directly confront military targets.
  6. is only short term.

ANS: C DIF: Moderate REF: Page 246  TOP: Rationality | Terrorism: Goals MSC: Conceptual

  1. Al Qaeda was primarily created:
  2. hundreds of years ago by Islamic clerics.
  3. shortly after the 9/11 attacks to continue the campaign against the United States.
  4. in 2003, after the United States invaded Iraq.
  5. during the 1980s, while the Soviet Union was fighting in Afghanistan.
  6. during the Iran-Iraq war of the 1980s.

ANS: D DIF: Easy REF: Page 247  TOP: Terrorism: Al Qaeda MSC: Factual

  1. Al Qaeda became dissatisfied with Saudi Arabia when:
  2. it invited United States troops in to defend the Kingdom in 1991.
  3. it participated in the oil embargo against the United States.
  4. it refused to aid the mujahideen in Afghanistan during the 1980s.
  5. it began to democratize in the late 1990s.
  6. it supported Iraq in the first Gulf War

ANS: A DIF: Moderate REF: Page 248  TOP: Terrorism: Al Qaeda MSC: Factual

  1. Which is NOT a grievance articulated by Al Qaeda?
  2. The United States backs dictatorial governments in the Middle East.
  3. The United States supports Israel.
  4. The United States has military bases in Saudi Arabia.
  5. Non-Islamist governments exist in the Muslim world.
  6. The United States is a capitalist society.

ANS: E DIF: Moderate REF: Page 247  TOP: Terrorism: Al Qaeda MSC: Factual

  1. Why might terrorists have to engage in violence before bargaining even starts?
  2. They cannot be considered terrorists until they commit violence.
  3. It is the only way a state will recognize that they have legitimate grievances.
  4. It shows the state they have tried non-violent alternatives first.
  5. Specifying threats can undermine their capability to carry those actions out.
  6. A state will not know who credibly speaks for the larger population until the group is identified as terrorists.

ANS: D DIF: Difficult REF: Page 249  TOP: Bargaining MSC: Conceptual

  1. Terrorist groups being unable to rein in loose cannons represent what kind of threat to bargaining?
  2. Information asymmetries.
  3. Commitment problems.
  4. Issue indivisibilities.
  5. International intervention.
  6. Brinkmanship bargaining.

ANS: B DIF: Moderate REF: Page 250  TOP: Terrorism: Bargaining MSC: Applied

  1. States refusing to negotiate with terrorists are to trying to overcome what kind of problem created by bargaining with terrorists?
  2. Information asymmetries.
  3. Commitment problems.
  4. Issue indivisibilities.
  5. International intervention.
  6. Brinkmanship bargaining.

ANS: B DIF: Difficult REF: Pages 25051  TOP: Terrorism: Bargaining MSC: Conceptual

  1. If Al Qaeda demanded that the leadership of the United States converted to Islam, what kind of bargaining problem would this represent?
  2. Information asymmetries.
  3. Commitment problems.
  4. Issue indivisibilities.
  5. International intervention.
  6. Brinkmanship bargaining.

ANS: C DIF: Moderate REF: Page 251  TOP: Terrorism: Bargaining MSC: Applied

  1. Which terrorist group has committed the most suicide terrorist attacks in history?
  2. Al Qaeda.
  3. Liberation Tigers of Tamil Ealem.
  4. Taliban.
  5. Al Qaeda in Iraq.
  6. Hamas.

ANS: C DIF: Moderate REF: Page 252  TOP: Tactics MSC: Factual

  1. What is not a traditional way in which terrorists can achieve their aims?
  2. Coercion.
  3. Spoiling.
  4. Outbidding.
  5. Provocation.
  6. Conquering.

ANS: E DIF: Moderate REF: Pages 25255  TOP: Tactics MSC: Conceptual

  1. Threatening to destroy a national monument unless a state reverses a particular policy is an example of which terrorist tactic?
  2. Coercion.
  3. Spoiling.
  4. Outbidding.
  5. Provocation.
  6. Propagandizing.

ANS: A DIF: Easy REF: Page 253  TOP: Tactics MSC: Applied

  1. Attacking a vulnerable population within a state in an attempt to encourage retaliation by the state is an example of which terrorist tactic?
  2. Coercion.
  3. Spoiling.
  4. Outbidding.
  5. Provocation.
  6. Propagandizing.

ANS: D DIF: Moderate REF: Pages 25354  TOP: Tactics MSC: Applied

  1. Committing a terrorist attack in an effort to derail a peace negotiation is an example of which terrorist tactic?
  2. Coercion.
  3. Spoiling.
  4. Outbidding.
  5. Provocation.
  6. Propagandizing.

ANS: B DIF: Moderate REF: Page 254  TOP: Tactics MSC: Applied

  1. Starting a fresh bombing campaign to demonstrate the strength of a terrorist group to a particular audience and discourage them from supporting a rival group is an example of which terrorist tactic?
  2. Coercion.
  3. Spoiling.
  4. Outbidding.
  5. Provocation.
  6. Propagandizing.

ANS: C DIF: Moderate REF: Page 255  TOP: Tactics MSC: Applied

  1. Which is NOT an effective state response for deterring terrorism?
  2. Negotiation and compromise.
  3. Criminalization.
  4. Ignoring terrorists.
  5. Defensive measures.
  6. Preemption.

ANS: C DIF: Moderate REF: Pages 25660  TOP: Preventing Terrorism MSC: Applied

Essay

  1. Why do some grievances lead to civil war and others do not?

ANS: Answer will vary.

TOP: Grievances

  1. Do different types of rebel demands (separatism, revolution, irredentism) change the nature of the conflict and what strategies the state can use in responding to a rebel group?

ANS: Answer will vary.

TOP: Motivations: Goals

  1. How do rebels overcome the collective-action problem? What strategies are the most successful?

ANS: Answer will vary.

TOP: Motivations

  1. What characteristics of a state make civil war more likely?

ANS: Answer will vary.

TOP: Motivations

  1. What can international actors do to prevent civil war? What can they do to stop an ongoing civil war?

ANS: Answer will vary.

TOP: Preventing Civil Wars

  1. Why did the civil war in the Democratic Peoples Republic of Congo last for so long?

ANS: Answer will vary.

TOP: Civil War

  1. Why are civil wars concentrated in particular regions of the world?

ANS: Answer will vary.

TOP: Clustering

  1. What causes a state to intervene in a civil war? Is this more or less likely to end the civil war?

ANS: Answer will vary.

TOP: Civil War

  1. When is terrorism most likely to be adopted by a group as a strategy? Why would a group adopt terrorism instead of insurgency? When would a group conduct both?

ANS: Answer will vary.

TOP: Civil War | Terrorism

  1. Have terrorist groups ever achieved their aims? If so, how were they able to do so? If not, elaborate on why they fail.

ANS: Answer will vary.

TOP: Rationality | Terrorism: Goals

  1. Will the United States ever be able to completely wipe out Al Qaeda? Elaborate on your reasoning.

ANS: Answer will vary.

TOP: Terrorism: Al Qaeda

  1. Explain two different strategies terrorists adopt to achieve their goals. When might one strategy be superior to the other?

ANS: Answer will vary.

TOP: Tactics

  1. Can states prevent terrorism? Why or why not?

ANS: Answer will vary.

TOP: Preventing Terrorism

  1. How can states effectively deter terrorism?

ANS: Answer will vary.

TOP: Preventing Terrorism

Chapter 7

International Trade

Concept Map

  1. Introduction
  2. Protection
  3. Liberalization
  4. Trade
  5. Comparative Advantage
  6. Absolute Advantage
  7. Factor Endowments
  8. Economic Links
  9. Trade Barriers
  10. Liberalization

III.  Protectionism

  1. Economic Interests
  2. Factor Model
  3. Sector Model
  4. Domestic Institutions
  5. Political Economy of Trade
  6. Collective Action
  7. Domestic Institutions
  8. Trade Results
  9. Strategic Interaction
  10. Dumping
  11. Trade Institutions
  12. Cooperation
  13. Trends in Trade

Multiple Choice

  1. How much does sugar cost in the United States compared to the world market price?
  2. Sugar in the United States costs the same as the world market price.
  3. Sugar in the United States costs about twice as much as the world market price.
  4. Sugar in the United States costs about ten times as much as the world market price.
  5. Sugar in the United States costs about half the world market price.
  6. Sugar in the United States costs about a quarter less than the world market price.

ANS: B DIF: Easy REF: Page 265  TOP: Protection MSC: Factual

  1. Which of the following statements about trade policy is true?
  2. No country in the world currently maintains trade barriers.
  3. Few countries in the world maintain trade barriers.
  4. A bare majority of countries in the world maintain some trade barriers.
  5. A large majority of countries in the world maintain some trade barriers.
  6. Every country in the world maintains some trade barriers.

ANS: E DIF: Easy REF: Page 266  TOP: Protection MSC: Factual

  1. Which of these is most likely a poor, developing country?
  2. A country that exports machinery for producing shoes.
  3. A country that exports aircraft.
  4. A country that exports copper.
  5. A country that exports computer chips.
  6. A country that exports automobiles and trucks.

ANS: C DIF: Easy REF: Page 266  TOP: Protection MSC: Applied

  1. Given the following exports, which of these is most likely a rich, developed country?
  2. A country that exports shoes.
  3. A country that exports computer chips.
  4. A country that exports copper.
  5. A country that exports oil.
  6. A country that exports jeans.

ANS: B DIF: Moderate REF: Page 266  TOP: Protection MSC: Applied

  1. Why do countries restrict trade?
  2. Some influential interest groups may benefit from tariffs.
  3. Trade restrictions are always the best way to improve a countrys overall economy.
  4. Trade restrictions usually are the best way to improve a countrys overall economy.
  5. Free trade hurts industries that make use of the most abundant resource in a country.
  6. Trade restrictions are more important to consumers than to producers of products.

ANS: A DIF: Moderate REF: Pages 26667  TOP: Protection MSC: Conceptual

  1. What is trade liberalization?
  2. Being tolerant of imports from other countries.
  3. Increasing taxes on manufacturers of exports.
  4. Strengthening government oversight of imports.
  5. Reducing barriers to trade between countries.
  6. Imposing controls on the free flow of goods.

ANS: D DIF: Easy REF: Page 274  TOP: Liberalization MSC: Factual

  1. Which of the following statements best describes the opinion of most economists about trade?
  2. Trade barriers are bad for economic growth and well-being.
  3. Trade barriers have no discernible effect on domestic production.
  4. Trade barriers have no long-term effect on exports.
  5. Trade barriers are a rising tide that lifts all boats.
  6. Trade barriers disproportionately hurt low-skilled labor.

ANS: A DIF: Easy REF: Page 267  TOP: Introduction: Liberalization MSC: Applied

  1. Which kind of state is least likely to benefit from trade?
  2. A state that has a comparative advantage at producing a few goods.
  3. A state that has a comparative advantage at producing one good.
  4. A state that has powerful business interests that produce goods which are more expensive than the global price.
  5. A state that has powerful business interests that produce goods that are cheaper than the global price.
  6. A state that can produce everything it wants to consume and does it more cheaply than the other alternatives.

ANS: E DIF: Difficult REF: Page 268  TOP: Introduction: Liberalization MSC: Conceptual

  1. Which of the following is an example of specialization and division of labor?
  2. A farm family building its own tractor.
  3. A worker in a Toyota plant welding a rear axle on a Corolla all day, every day.
  4. A popular motorcycle manufacturer beginning to produce small automobiles.
  5. Workers in a bottling plant rotating positions on the assembly line in order to master the entire process.
  6. Managers in a computer factory assigning workers to tasks based on their specialized skills.

ANS: B DIF: Easy REF: Page 268  TOP: Comparative Advantage MSC: Applied

  1. Why does division of labor make international trade profitable?
  2. Countries can always trade with other countries.
  3. Every country can produce all the products it needs.
  4. The countries that are most efficient at producing particular products produce them.
  5. Countries can learn to create products that they are inefficient at producing.
  6. Workers always benefit when their labor is divided.

ANS: C DIF: Moderate REF: Page 268  TOP: Comparative Advantage MSC: Conceptual

  1. What is comparative advantage?
  2. The ability of countries to benefit from specializing in what they do best.
  3. The capacity of some countries to produce everything better than other countries.
  4. The advantage that countries which export many products have over more specialized economies.
  5. The fact that the industrialized countries have advanced economies that are comparable.
  6. The benefit that workers in an industrialized country have over workers in less developed countries.

ANS: A DIF: Moderate REF: Page 269  TOP: Comparative Advantage MSC: Factual

  1. Which of the following is an example of absolute advantage?
  2. Since Turkey controls the Bosporus Strait, the countries on the Black Sea are completely dependent on it for access to the Mediterranean.
  3. India is more efficient at producing cloth than Portugal, but Portugal is more efficient at producing wine than India.
  4. Portugal is better at producing wine than producing cloth.
  5. The United States makes software more efficiently than any other countries.
  6. Saudi Arabia has one-fifth of the worlds proven oil reserves.

ANS: D DIF: Difficult REF: Page 269  TOP: Absolute Advantage MSC: Applied

  1. All of the following are factors of production EXCEPT:
  2. land.
  3. military power.
  4. unskilled labor.
  5. skilled labor.
  6. investment capital.

ANS: B DIF: Easy REF: Page 270  TOP: Factor Endowments MSC: Factual

  1. Which of the following would be a countrys endowment?
  2. A grant from another country.
  3. Machinery to make automobiles.
  4. A donation to another country.
  5. A bequest by a former leader.
  6. Contributions made to a country by nongovernmental organizations.

ANS: B DIF: Moderate REF: Page 270  TOP: Factor Endowments MSC: Applied

  1. Which of the following would be expected by the Heckscher-Ohlin trade theory?
  2. A country with abundant fertile land exporting agricultural products.
  3. A country with abundant capital importing manufactured goods.
  4. A country with abundant fertile land importing agricultural goods.
  5. A country with abundant labor exporting agricultural products.
  6. A country with abundant capital exporting agricultural goods.

ANS: A DIF: Difficult REF: Pages 27072  TOP: Factor Endowments MSC: Applied

  1. All of the following are more likely to have higher levels of trade than other similar countries EXCEPT:
  2. two countries that have a dispute over ownership of a border region.
  3. two countries that use the same currency.
  4. a country that buys many bonds issued by another country.
  5. two countries with embassies in each others countries.
  6. two members of a military alliance.

ANS: A DIF: Easy REF: Pages 27273  TOP: Economic Links MSC: Applied

  1. What is protectionism?
  2. The creation of alliances to ward off threats to a country.
  3. Excessive worry about attacks from other countries.
  4. The use of conscious measures to shield domestic producers from imports.
  5. The use of free trade to improve the efficiency of domestic producers.
  6. The dumping of goods in other countries.

ANS: C DIF: Easy REF: Page 273  TOP: Trade Barriers MSC: Factual

  1. Which of the following is NOT a trade barrier?
  2. Subsidies.
  3. Tariffs.
  4. Quantitative restrictions.
  5. Import licenses.
  6. Environmental restrictions.

ANS: A DIF: Easy REF: Pages 27374  TOP: Trade Barriers MSC: Applied

  1. All of the following are examples of protectionism EXCEPT:
  2. a quota on the number of Japanese cars imported into the United States.
  3. a ban on computers imported into Brazil.
  4. a tax on steel imports into the United States.
  5. dumping of semiconductors in the United States by South Korea.
  6. the Mexican government limiting the number of tons of sugar imported into Mexico.

ANS: D DIF: Easy REF: Pages 27374  TOP: Trade Barriers MSC: Applied

  1. Which of the following is a tariff?
  2. A toll on land and sea traffic entering a country.
  3. A regulation that restricts the type of products that can be imported.
  4. A ban on imports from another country.
  5. A limit to the amount of a foreign good that can be sold in a country.
  6. A tax on imports levied at the border, paid by the importer.

ANS: E DIF: Easy REF: Pages 27374  TOP: Trade Barriers MSC: Applied

  1. Which of the following is a quota?
  2. A toll on land and sea traffic entering a country.
  3. A regulation that restricts the type of products that can be imported.
  4. A ban on imports from another country.
  5. A limit to the amount of a foreign good that can be sold in a country.
  6. A tax on imports levied at the border, paid by the importer.

ANS: D DIF: Easy REF: Page 274  TOP: Trade Barriers MSC: Applied

  1. Which of these periods was most characterized by trade liberalization?
  2. The early to mid-1800s.
  3. The late 1800s until World War I.
  4. During World War I.
  5. Between World War I and World War II.
  6. During World War II.

ANS: B DIF: Moderate REF: Pages 27475  TOP: Trade: Liberalization MSC: Applied

  1. Which statement best describes the position of the United States toward free trade?
  2. The United States has always promoted free trade.
  3. The United States has always been a highly protectionist country.
  4. The United States was initially in favor of free trade, but then become more protectionist, and is currently highly protectionist.
  5. The United States was initially in favor of free trade, became protectionist, but currently promotes free trade.
  6. The United States was initially strongly protectionist, but has since favored free trade.

ANS: E DIF: Moderate REF: Pages 27476  TOP: Trade: Liberalization MSC: Factual

  1. Which of the following is most likely a developed country?
  2. A country with no trade restrictions of any kind on imports.
  3. A country with no quotas on manufactured goods.
  4. A country that imposes a tax on technology exports.
  5. A country that has trade restrictions on agricultural imports.
  6. A country that has high tariffs on manufactured goods.

ANS: D DIF: Moderate REF: Page 275  TOP: Protectionism MSC: Applied

  1. What is the effect of trade barriers?
  2. Imports become less expensive for domestic producers.
  3. A glut of imported products develops.
  4. Domestic producers of the protected good can sell their product at a higher price.
  5. Domestic producers of the protected good have to lower the wages paid to their workers.
  6. Domestic producers of the protected goods can sell less of the good.

ANS: C DIF: Easy REF: Pages 27677  TOP: Economic Interests MSC: Applied

  1. Which of the following is most likely to benefit from protectionism?
  2. Consumers of all goods, because they are protected from inferior products.
  3. Consumers of imported products.
  4. Domestic producers of goods that are also imported from foreign countries.
  5. Domestic producers of goods that are exported to other countries.
  6. Foreign producers of goods that are exported to other countries.

ANS: C DIF: Easy REF: Pages 27677  TOP: Economic Interests MSC: Applied

  1. When the United States established steel tariffs in 2002, who benefited?
  2. Steel exporters in other countries.
  3. Consumers in the United States.
  4. Producers in the United States that used steel as an input.
  5. Steel importers in the United States.
  6. Steel exporters in the United States.

ANS: E DIF: Moderate REF: Page 278  TOP: Economic Interests MSC: Applied

  1. What is the Stolper-Samuelson theorem?
  2. The theory that protection hurts the scarce sector.
  3. The theory that protection hurts the scarce factor of production.
  4. The theory that protection benefits the scarce sector.
  5. The theory that protection benefits the abundant factor of production.
  6. The theory that protection benefits the scarce factor of production.

ANS: E DIF: Moderate REF: Page 279  TOP: Factor Model MSC: Conceptual

  1. Which of the following is explained well by the Stolper-Samuelson theorem?
  2. Farmers in land-poor France tend to favor liberal trade policies.
  3. Farmers in land-rich Argentina tend to favor liberal trade policies.
  4. Workers in the scarce-labor United States tend to oppose protectionist trade policies.
  5. Workers in labor-rich Bangladesh tend to favor protectionist trade policies.
  6. Owners of capital in capital-poor Thailand favor liberal trade policies.

ANS: B DIF: Moderate REF: Pages 279  TOP: Factor Model MSC: Applied

  1. What is the Ricardo-Viner explanation for trade-policy preferences?
  2. A countrys government will usually prefer to protect owners of capital.
  3. The interests of groups in society toward trade are determined by which factor of production they are part of.
  4. The interests of factors of production are often determined by the industry sector, rather than by the factor of production.
  5. A country will import goods that make intensive use of the resources a country has in abundance.
  6. A country will impose tariffs on goods that compete with goods made using its most abundant factor intensively.

ANS: C DIF: Difficult REF: Page 28081  TOP: Sector Model MSC: Conceptual

  1. Which of the following is explained well by the specific-factor approach (Ricardo-Viner)?
  2. Steel workers and steel factory owners both lobby for tariffs on imported steel.
  3. Steel workers and agricultural workers join together to oppose tariffs.
  4. Owners of factories in a country with abundant fertile land promote free trade.
  5. Car manufacturers and owners of mega-farms collude in lobbying for tariffs on car and wheat imports.
  6. Workers in an automobile factory promote free trade while the factory owners lobby for tariffs on imported cars.

ANS: A DIF: Difficult REF: Pages 28081  TOP: Sector Model MSC: Applied

  1. Which of the following trade policy results would be most expected, given the logic of collective action?
  2. Factory workers successfully lobbying for higher tariffs on imported automobiles.
  3. Agricultural workers successfully lobbying for lower tariffs on imported wheat.
  4. Consumers successfully lobbying for higher tariffs on imported corn.
  5. Consumers successfully lobbying for lower tariffs on imported televisions.
  6. Automobile manufacturers successfully lobbying for higher tariffs on imported automobiles.

ANS: E DIF: Easy REF: Page 282  TOP: Collective Action MSC: Applied

  1. Which of the following is NOT a beneficiary of the sugar policy of the United States?
  2. Sugar cane farmers in Hawaii.
  3. Sugar beet farmers in Minnesota.
  4. Sugar cane farmers in Brazil.
  5. Sugar cane farmers in Florida and Louisiana.
  6. Foreign sugar producers in Mexico and the Philippines.

ANS: C DIF: Moderate REF: Page 283  TOP: Collective Action MSC: Factual

  1. Which of the following is a deadweight cost?
  2. The debt burden that developing countries have incurred because of protectionist policies.
  3. The difference between the domestic price and the international market price of goods.
  4. The amount of money Uruguayan consumers pay for cars that exceeds the profits Uruguayan car manufacturers make because of trade protection.
  5. The amount of money it will cost a countrys economy to switch from protectionist to liberal trade policies.
  6. The price of a good before adding the cost of tariffs or other forms of protection.

ANS: C DIF: Moderate REF: Page 283  TOP: Collective Action MSC: Applied

  1. Which of the following countries is most likely to follow a liberal trade policy?
  2. A country led by a dictator who suppresses national political parties.
  3. A country led by a dictator who allows limited elections to take place.
  4. A country led by a small group of military officers.
  5. a democratic country with strong national political parties and a powerful executive.
  6. A democratic country with weak political parties and a weak national executive.

ANS: D DIF: Moderate REF: Pages 28182  TOP: Protectionism: Domestic Institutions MSC: Applied

  1. Which of the following would be a movement toward the Pareto frontier with regard to the benefits of trade?
  2. Steel workers losing their jobs because of steel imports get free training, paid for by the government, so they can get jobs in another industry.
  3. Agricultural workers facing wage decreases because of imported food successfully lobby the government to institute tariffs.
  4. Workers in a clothing factory in Mexico being laid off go to the United States to find work.
  5. South Korean semiconductor manufacturers sell their products at a lower-than-market price in Japan.
  6. The wages of Bangladeshi shoe makers rise when the United States imposes tariffs on shoe imports.

ANS: A DIF: Difficult REF: Page 286  TOP: Trade Results MSC: Applied

  1. Which of the following is an example of factor price equalization?
  2. When protection is removed, the domestic price of rice in Japan becomes greater than the international price of rice.
  3. When protection is removed, the wages of Mexican agricultural workers rise, and the wages of United States agricultural workers decrease.
  4. The United States imposes tariffs to ensure that the price of imported corn is equal to that of domestically grown corn.
  5. The World Trade Organization enforces rules prohibiting steel tariffs.
  6. The World Trade Organization enforces rules prohibiting the sale of semiconductors for less than their cost.

ANS: B DIF: Moderate REF: Pages 28687  TOP: Trade Results MSC: Applied

  1. Which of the following groups in the United States is most likely to have experienced stagnant or declining wages since the 1970s?
  2. Workers in a chicken processing plant in Louisiana.
  3. Workers doing computer coding in Californias Silicon Valley.
  4. Film editors in Los Angeles.
  5. Book editors in New York City.
  6. Workers in a pharmaceutical plant in Minnesota.

ANS: A DIF: Easy REF: Pages 28687  TOP: Trade Results MSC: Applied

  1. Which scenario represents strategic interaction in trade?
  2. The United States creating a quota on sugar imports, due to lobbying from sugar manufacturers.
  3. The European Union instigating a case against genetically modified organisms in the World Trade Organization to prevent U.S. agricultural imports.
  4. Japan not raising tariffs on U.S. automobiles, as it fears retaliation from the United States.
  5. France creating new tariffs on U.S. goods, due to U.S. restrictions on French wine.
  6. Great Britain unilaterally liberalizing its agricultural sector.

ANS: C DIF: Difficult REF: Page 287  TOP: Strategic Interaction MSC: Applied

  1. All of the following statements about dumping are true EXCEPT:
  2. dumping consists of selling goods below their true cost.
  3. exporters use dumping to put competitors out of business.
  4. dumping is widely seen as unfair.
  5. dumping is easy to define and measure.
  6. governments can aid dumping by subsidizing industries.

ANS: D DIF: Easy REF: Page 290  TOP: Dumping MSC: Factual

  1. Which of the following is most likely to help countries overcome trade problems with each other?
  2. When a large number of countries participate in trade negotiations so they can gain broader consensus.
  3. When countries have limited interactions over time and therefore little chance for disputes.
  4. When countries are able to restrict the information that other countries have about their products.
  5. When the countries have concluded a limited war fought with each other to resolve a dispute over trade routes.
  6. When countries can negotiate concessions in different industries to achieve an agreement.

ANS: E DIF: Moderate REF: Pages 29092  TOP: Trade Institutions MSC: Conceptual

  1. What is the Theory of Hegemonic Stability?
  2. The hegemonic spread of the belief in the benefits of free trade will lead to a liberal world trading system.
  3. The spread of free trade throughout the world will lead to a stable single trading system.
  4. The longer countries keep their free-trade policies, the more likely they are to remain pro-free trade.
  5. Having one single hegemonic source of information can improve the chances of stability in international trade.
  6. One large state that is willing and powerful enough can solve the collective action problems of international trade.

ANS: E DIF: Easy REF: Pages 29193  TOP: Trade Institutions MSC: Factual

  1. Why would transparency affect trade cooperation?
  2. A country would be more reluctant to enter into a free-trade agreement if it has little information about another countrys subsidies to domestic producers.
  3. Two countries with too much information about each others tax policies would find it difficult to negotiate a free-trade agreement.
  4. Countries that negotiate simpler trade agreements are more likely to suspect the other side of cheating.
  5. Countries with more reasonable negotiators are more likely to negotiate effective trade agreements.
  6. Countries try to conceal information about their domestic policies to improve the likelihood of negotiating an effective free-trade agreement.

ANS: A DIF: Easy REF: Page 292  TOP: Cooperation MSC: Conceptual

  1. Which of the following is an example of reciprocity in international trade?
  2. Most of the countries in the European Union have adopted the same currency.
  3. France reduced tariffs on wheat imports after Great Britain reduced tariffs on wheat imports.
  4. Argentina, Brazil, Uruguay, and Paraguay collectively agreed to a common tariff on external goods.
  5. A majority of the worlds countries have joined the World Trade Organization.
  6. Oil-producing states cooperate on how much oil they will export.

ANS: B DIF: Easy REF: Page 293  TOP: Cooperation MSC: Applied

  1. What is Most Favored Nation (MFN) status?
  2. When countries give each other the same trade concessions they give to all other countries.
  3. When a country gives special trade privileges to a close ally.
  4. When a country spares no expense to increase trade with another country.
  5. When a country has the wealthiest and most developed economy.
  6. When a country promotes trade with military allies.

ANS: A DIF: Moderate REF: Page 293  TOP: Trade Institutions MSC: Factual

  1. Which of the following statements about the World Trade Organization (WTO) is NOT true?
  2. All countries have equal votes in decision making in the WTO.
  3. The WTO has helped achieve the liberalization of agricultural trade in developed countries.
  4. The largest member countries dominate negotiations in the WTO.
  5. Developing countries often find that discussions of issues of concern to them are blocked in the WTO.
  6. The WTO has helped countries reduce barriers to trade.

ANS: B DIF: Easy REF: Pages 29395  TOP: Trade Institutions MSC: Applied

  1. Why are those who favor free trade concerned about regional trade agreements?
  2. They think there are too few regional trade agreements.
  3. They think regional trade agreements are biased toward workers rights.
  4. They think the signers of regional trade agreements will become more protectionist in general.
  5. They think regional trade agreements will be stepping stones toward a more integrated world economy.
  6. They think regional trade agreements may result in the members trading only among themselves.

ANS: E DIF: Easy REF: Pages 29598  TOP: Trade Institutions MSC: Conceptual

  1. Why do anti-globalization critics criticize the World Trade Organization?
  2. They think the World Trade Organization favors domestic workers over other actors.
  3. They think the World Trade Organization disregards environmental issues.
  4. They think the World Trade Organization is overly concerned about workers health and safety.
  5. They think the World Trade Organization is not doing enough to reduce government subsidies for domestic producers in developing countries.
  6. They think the World Trade Organization has too little authority in regulating international trade.

ANS: B DIF: Easy REF: Pages 288, 300301  TOP: Trade Institutions MSC: Conceptual

  1. Which of the following is an example of absolute advantage?
  2. Japan makes cars more efficiently than the United States.
  3. Germany makes cars more efficiently than the United States, and the United States makes software more efficiently than Germany.
  4. The United States is likely to win in a trade war against either Germany or Japan.
  5. Japan makes cars more efficiently than any other country.
  6. All countries are equally efficient at making software.

ANS: D DIF: Difficult REF: Pages 269, 306  TOP: Absolute Advantage MSC: Applied

Use the following table for questions 5052.

Country Cloth Wine
  Cost in man-hours per bolt Cost in man-hours per barrel
England 15 30
Portugal 10 15

 

  1. Which is true of Portugal in the table?
  2. Portugal has an absolute advantage over England in both cloth and wine.
  3. Englands opportunity cost for producing wine is lower than Portugals.
  4. Portugal can produce more wine than England.
  5. Neither country has a comparative advantage in the production of cloth.
  6. Neither country has a comparative advantage in the production of wine.

ANS: A DIF: Easy REF: Page 307  TOP: Comparative Advantage MSC: Conceptual

  1. The table is an example of:
  2. absolute advantage.
  3. comparative advantage.
  4. trade bargaining.
  5. the prisoners dilemma.
  6. stag hunt.

ANS: B DIF: Easy REF: Page 307  TOP: Comparative Advantage MSC: Conceptual

  1. According to Ricardos theory on trade, in the example described by the table, Portugal should:
  2. let England produce everything.
  3. produce wine exclusively.
  4. produce cloth exclusively.
  5. produce everything itself.
  6. produce half the wine and half the cloth needed by both parties.

ANS: B DIF: Moderate REF: Page 308  TOP: Comparative Advantage MSC: Conceptual

Use the following figure for questions 5355.

 

  1. What is true of an autarkic state in the example depicted in the figure, where Pw is the world price of a good?
  2. Protectionism is ideal for the state.
  3. If the state liberalizes, it would be a price setter.
  4. If the state liberalizes, it would be a price taker.
  5. Consumers will be hurt by liberalization.
  6. There are no possible gains from liberalization or further protectionism.

ANS: C DIF: Moderate REF: Page 308  TOP: Comparative Advantage MSC: Conceptual

  1. Line Qs to Qd in the figure represents what occurring under liberalization?
  2. Increased revenue for the state.
  3. The new price of the good within the state.
  4. How much of the good consumers will demand.
  5. How much of the good will be imported by the state.
  6. How much domestic firms will produce for domestic consumption.

ANS: D DIF: Difficult REF: Page 308  TOP: Comparative Advantage MSC: Conceptual

  1. In the figure, at what level will domestic firms produce under liberalization?
  2. Qs.
  3. Qd.
  4. A.
  5. B.
  6. P.

ANS: B DIF: Moderate REF: Page 308  TOP: Comparative Advantage MSC: Conceptual

Use the following figure to answer questions 5658.

 

  1. What is true of a state that adopts a tariff in the scenario depicted in the figure?
  2. It will increase domestic consumption of the good.
  3. It will have no effect on domestic consumption of the good
  4. It will decrease domestic production of the good.
  5. It will increase domestic production of the good.
  6. It will have no effect on domestic production of the good.

ANS: D DIF: Moderate REF: Page 310  TOP: Comparative Advantage MSC: Conceptual

  1. Line Qdt to Qd represents what occurring under the tariff in the figure?
  2. Increased revenue for the state.
  3. The new price of the good within the state.
  4. How much of the good consumers will demand.
  5. How much of the good that will be imported by the state.
  6. How much less the consumers would demand when compared to the world price.

ANS: E DIF: Difficult REF: Page 310  TOP: Comparative Advantage MSC: Conceptual

  1. In the above figure, at what level will domestic firms produce under the tariff?
  2. Qst.
  3. Qdt.
  4. A.
  5. C.
  6. Pw.

ANS: A DIF: Moderate REF: Page 310  TOP: Comparative Advantage MSC: Conceptual

Essay

  1. Explain how interests, institutions, and interactions affect the likelihood of trade liberalization or trade restriction in domestic politics.

ANS: Answer will vary.

TOP: Trade: Liberalization | Protectionism

  1. How does the Stolper-Samuelson theorem explain why some countries are protectionist and others are not?

ANS: Answer will vary.

TOP: Factor Endowments | Factor Model

  1. How do domestic political institutions affect whether a country will adopt trade liberalization or protectionism?

ANS: Answer will vary.

TOP: Trade: Liberalization | Protectionism: Domestic Institutions

  1. How do international institutions affect whether the world trading system is more or less open?

ANS: Answer will vary.

TOP: Trade: Liberalization

  1. How do international institutions contribute to trade liberalization by increasing transparency and providing information?

ANS: Answer will vary.

TOP: Cooperation

  1. Explain Hegemonic Stability Theory and how one or a few powerful countries can affect the international trading system.

ANS: Answer will vary.

TOP: Trade Institutions

  1. How and why did granting fast track authorization to the United States president by Congress contribute to the adoption of trade liberalization?

ANS: Answer will vary.

TOP: Trade Institutions

  1. Explain how trade bargaining problems can resemble a Prisoners Dilemma.

ANS: Answer will vary.

TOP: Cooperation

  1. Why do powerful countries like the United States abide by World Trade Organization (WTO) rules, even when the WTO rules against them?

ANS: Answer will vary.

TOP: Trade Institutions

  1. Why are subsidies to producers such as sugar farmers politically attractive policies for politicians?

ANS: Answer will vary.

TOP: Political Economy of Trade: Domestic Institutions

  1. How does the WTO both help and hurt the worlds poor?

ANS: Answer will vary.

TOP: Trade Institutions

  1. Explain how the United States approach to trade has changed since the beginning of the nineteenth century. How have interests, institutions, and interactions created change or reinforced the status quo?

ANS: Answer will vary.

TOP: Trade: Liberalization | Protectionism

  1. Demonstrate mathematically how comparison suggests two countries should specialize and trade. Despite the math, why would countries refuse to partake in trade?

ANS: Answer will vary.

TOP: Comparative Advantage

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