test bank 6.docx

1、test bank 6CHAPTER 7TRADE POLICIES FOR THE DEVELOPING NATIONSMULTIPLE-CHOICE QUESTIONS 1. Which of the following is not a major factor that encourages developing nations to form international commodity agreements?a. Inelastic commodity supply schedulesb. Inelastic commodity demand schedulesc. Export

2、 markets that tend to be unstabled. Secular increases in their terms of trade 2. International commodity agreements do not:a. Consist of consuming and producing nations who desire market stabilityb. Levy export cutbacks so as to offset rising commodity pricesc. Utilize buffer stocks to generate comm

3、odity price stabilityd. Increase the supply of commodities to prevent rising prices 3. Concerning the price elasticities of supply and demand for commodities, empirical estimates suggest that most commodities have:a. Inelastic supply schedules and inelastic demand schedulesb. Inelastic supply schedu

4、les and elastic demand schedulesc. Elastic supply schedules and inelastic demand schedulesd. Elastic supply schedules and elastic demand schedules 4. If the demand schedule for bauxite is relatively inelastic to price changes, an increase in the supply schedule of bauxite will cause a(n):a. Decrease

5、 in price and a decrease in sales revenueb. Decrease in price and an increase in sales revenuec. Increase in price and a decrease in sales revenued. Increase in price and an increase in sales revenue 5. A primary goal of international commodity agreements has been the:a. Maximization of members reve

6、nues via export taxesb. Nationalization of corporations operating in member nationsc. Adoption of tariff protection against industrialized nation sellersd. Moderation of commodity price fluctuations when markets are unstable 6. Which device has the International Tin Agreement utilized as a way of st

7、abilizing tin prices?a. Multilateral contractsb. Export subsidiesc. Buffer stocksd. Export tariffs 7. Which method has not generally been used by the international commodity agreements to stabilize commodity prices?a. Production quotas applied to the level of commodity outputb. Buffer stock arrangem

8、ents among producing nationsc. Export restrictions applied to international sales of commoditiesd. Measures to nationalize foreign-owned production operations 8. The OPEC nations during the 1970s manifested their market power by utilizing:a. Export tariffs levied for revenue purposesb. Export tariff

9、s levied for protective purposesc. Import tariffs levied for protective purposesd. Import tariffs levied for revenue purposes 9. One factor that has prevented the formation of cartels for producers of commodities is that:a. The demand for commodities tends to be price inelasticb. Substitute products

10、 exist for many commoditiesc. Commodity produces have been able to dominate world marketsd. Production of most commodities is capital intensive 10. Which device has been used by the International Wheat Agreement to stipulate the minimum prices at which importers will buy stipulated quantities from p

11、roducers and the maximum prices at which producers will sell stipulated quantities to importers?a. Buffer stocksb. Export controlsc. Multilateral contractsd. Production controls 11. If the bauxite exporting countries form a cartel to boost the price of bauxite so as to increase sales revenue, they b

12、elieve that the demand for bauxite:a. Is inelastic with respect to price changesb. Is elastic with respect to price changesc. Will increase in response to a price increased. Will not change in response to a price change 12. If the supply schedule for tin is relatively inelastic to price changes, a d

13、ecrease in the demand schedule for tin will cause a(n):a. Decrease in price and an increase in sales revenueb. Decrease in price and a decrease in sales revenuec. Increase in price and an increase in sales revenued. Increase in price and a decrease in sales revenue 13. Which of the following could p

14、artially explain why the terms of trade of developing countries might deteriorate over time?a. Developing-country exports mainly consist of manufactured goodsb. Developing-country imports mainly consist of primary productsc. Commodity export prices are determined in highly competitive marketsd. Comm

15、odity export prices are solely determined by developing countries 14. Which terms-of-trade concept emphasizes a nations capacity to import?a. Income terms of tradeb. Commodity terms of tradec. Barter terms of traded. Price terms of trade 15. Which trade strategy have developing countries used to res

16、trict imports of manufactured goods so that the domestic market is preserved for home producers, who thus can take over markets already established in the country?a. International commodity agreementb. Export promotionc. Multilateral contractd. Import substitution 16. Which trade strategy have devel

17、oping countries used to replace commodity exports with exports such as processed primary products, semi-manufacturers, and manufacturers?a. Multilateral contractb. Buffer stockc. Export promotiond. Export quota 17. To help developing countries expand their industrial base, some industrial countries

18、have reduced tariffs on designated manufactured imports from developing countries below the levels applied to imports from industrial countries. This scheme is referred to as:a. Generalized system of preferencesb. Export-led growthc. International commodity agreementd. Reciprocal trade agreement 18.

19、 Which nation accounts for the largest amount of OPECs oil reserves and production?a. Iranb. Libyac. Iraqd. Saudi Arabia 19. Assuming identical cost and demand curves, OPEC as a cartelin comparison to a competitive industrywill produce:a. Greater output and charge a lower priceb. Greater output and

20、charge a higher pricec. Less output and charge a higher priced. Less output and charge a lower price 20. Which of the following situations reduces the likelihood of successful operation of a cartel?a. Cartel sales experience a rapid expansionb. The demand for cartel output is price inelasticc. The n

21、umber of firms in the cartel is larged. It is very difficult for new firms to enter the market 21. Which industrialization policy used by developing countries places emphasis on the comparative advantage principle as a guide to resource allocation?a. Export promotionb. Import substitutionc. Internat

22、ional commodity agreementsd. Multilateral contract 22. A widely used indicator to differentiate developed countries from developing countries is:a. International trade per capitab. Real income per capitac. Unemployment per capitad. Calories per capita 23. Concerning the hypothesis that there has occ

23、urred a long-run deterioration in the developing countries terms of trade, empirical studies provide:a. Mixed evidence that does not substantiate the deterioration hypothesisb. Overwhelming support for the deterioration hypothesisc. Overwhelming opposition to the deterioration hypothesisd. None of t

24、he above 24. For the oil-importing countries, the increases in oil prices in 19731974 and 19791980 resulted in all of the following except:a. Balance of trade deficitsb. Price inflationc. Constrained economic growthd. Improving terms of trade 25. Hong Kong and South Korea are examples of developing

25、nations that have recently pursued industrialization policies. These countries are using:a. Import substitutionb. Export promotionc. Commercial dumpingd. Multilateral contract 26. Stabilizing commodity prices around long-term trends tends to benefit importers at the expense of exporters in markets c

26、haracterized by:a. Demand-side disturbancesb. Supply-side disturbancesc. Demand-side and supply-side disturbancesd. None of the above 27. Stabilizing commodity prices around long-term trends tends to benefit exporters at the expense of importers in markets characterized by:a. Demand-side disturbance

27、sb. Supply-side disturbancesc. Demand-side and supply-side disturbancesd. None of the above 28. To be considered a good candidate for an export cartel, a commodity should:a. Be a manufactured goodb. Be a primary productc. Have a high price elasticity of supplyd. Have a low price elasticity of demand

28、 29. To be considered a good candidate for an export cartel, a commodity should:a. Be a manufactured goodb. Be a primary productc. Have a low price elasticity of supplyd. Have a high price elasticity of demand 30. To help developing nations strengthen their international competitiveness, many indust

29、rial nations have granted nonreciprocal tariff reductions to developing nations under the:a. International commodity agreements programb. Multilateral contract programc. Generalized system of preferences programd. Export-led growth programThe diagram in Figure 7.1 illustrates the international tin m

30、arket. Assume that the producing and consuming countries establish an international commodity agreement under which the target price of tin is $5 per pound. Answer Questions 3133 on the basis of this information.Figure 7.1.Defending the Target Price in Face of Changing Demand Conditions 31. Consider

31、 Figure 7.1. Suppose the demand for tin increases from D0 to D1. Under a buffer stock system, the buffer-stock manager could maintain the target price by:a. Selling 15 pounds of tinb. Selling 30 pounds of tinc. Buying 15 pounds of tind. Buying 30 pounds of tin 32. Consider Figure 7.1. Suppose the de

32、mand for tin decreases from D0 to D2. Under a buffer stock system, the buffer-stock manager could maintain the target price by:a. Selling 15 pounds of tinb. Selling 30 pounds of tinc. Buying 15 pounds of tind. Buying 30 pounds of tin 33. Consider Figure 7.1. Suppose the demand for tin decreases from D0 to D2. Under a system of export quotas, the tin prod