1. Which of the following is true of the customs union?
a. in a customs union, tariff and non-tariff barriers between the member nations are absent.
b. in a customs union, a fixed exchange rate regime is implemented among the member nations.
c. in a customs union, member nations agree to transfer economic sovereignty to a supranational authority.
d. in a customs union, the member nations do not impose any external trade restrictions against the nonmembers.
2. When the national, taxation, social, and fiscal policies of two or more nations are administered by a supranational institution, the nations are said to be a part of:
a. a common market
b. a free-trade area
c. an economic union
d. a customs union
3. The trade creation effect under a customs union is stronger if:
a. the production effect increases
b. the trade diversion effect rises
c. the inefficient domestic producers continue to operate
d. The consumption effect reduces
4. Who among the following is a loser from free trade of the U.S. with Mexico?
a. Workers in import-competing industries in the U.S
b. Workers in labor-intensive businesses relocated from the U.S. to Mexico
c. The consumer in the U.S.
d. Workers in industries that use an imported component in its production process in the U.S.
5. A major hindrance to the growth processes of developing nations is that
a. they mostly adopt export-promoting industrialization policies
b. they have a dearth of low-wage workers.
c. they lack adequate institutions
d. they are not centrally planned economies
6. One of the functions of the World Bank is to
a. stipulates measures that will improve the balance of payments of a member nation
b. advances loans in foreign currencies to a member nation facing currency deficits
c. provides grants for specific development projects of a member nation.
d. review the trade policies of member nations and make necessary amendments
1. Which of the following is true of the customs union?
a. in a customs union, tariff and non-tariff barriers between the member nations are absent.
b. in a customs union, a fixed exchange rate regime is implemented among the member nations.
c. in a customs union, member nations agree to transfer economic sovereignty to a supranational authority.
d. in a customs union, the member nations do not impose any external trade restrictions against the nonmembers.
2. When the national, taxation, social, and fiscal policies of two or more nations are administered by a supranational institution, the nations are said to be a part of:
a. a common market
b. a free-trade area
c. an economic union
d. a customs union
3. The trade creation effect under a customs union is stronger if:
a. the production effect increases
b. the trade diversion effect rises
c. the inefficient domestic producers continue to operate
d. The consumption effect reduces
4. Who among the following is a loser from free trade of the U.S. with Mexico?
a. Workers in import-competing industries in the U.S
b. Workers in labor-intensive businesses relocated from the U.S. to Mexico
c. The consumer in the U.S.
d. Workers in industries that use an imported component in its production process in the U.S.
5. A major hindrance to the growth processes of developing nations is that
a. they mostly adopt export-promoting industrialization policies
b. they have a dearth of low-wage workers.
c. they lack adequate institutions
d. they are not centrally planned economies
6. One of the functions of the World Bank is to
a. stipulates measures that will improve the balance of payments of a member nation
b. advances loans in foreign currencies to a member nation facing currency deficits
c. provides grants for specific development projects of a member nation.
d. review the trade policies of member nations and make necessary amendments
