Question 1

If some of a country's resources are devoted to the provision of bribes and other incentives to legislators so as to influence voting behavior on particular policies, these actions __________; the actions are referred to by economists as __________.

Accepted Answer

The actions described in the scenario simply lead to a redistribution of income in the country rather than to enhanced production of goods and services. This type of activity is referred to by economists as "directly unproductive activity."

Question 2

The successful Uruguay Round of trade negotiations transformed the then-existing sponsoring agency into the __________, which began operation in __________.

Accepted Answer

The successful Uruguay Round of trade negotiations transformed the then-existing General Agreement on Tariffs and Trade (GATT) into the World Trade Organization (WTO), which began operation on January 1, 1995.

Question 3

Recent polling work discussed in the text pertaining to attitudes toward international trade suggests that Americans have __________. Another finding is that greater inequality in a country seems to be positively associated with a greater desire __________.

Accepted Answer

According to the text, recent polling work suggests that Americans have a less favorable opinion of the overall benefit of international trade than do citizens of many other countries. Additionally, the text states that greater inequality in a country seems to be positively associated with a greater desire to restrict rather than to expand international trade. Therefore, the correct choice is C, which states that Americans have a less favorable opinion of international trade and a desire to restrict rather than expand it.

Question 4

Since 1993, the U.S. and the European Union have had a number of disagreements over trade policy. Discuss some of the major disagreements and identify the groups in the U.S. that stand to gain from the policies and those that stand to lose.

Accepted Answer

The answer of Since 1993, the U.S. and the European...

Question 5

It is not uncommon to find a voting industry minority being able to put in place trade Policies that benefit that minority at the expense of the majority

Accepted Answer

The concept of "rational ignorance" among voters explains why a minority with strong interests in specific policies can have a disproportionate influence. Most consumers calculate that the time and effort to become informed and vote on every issue outweigh the perceived benefits, leading to lower participation or absenteeism in decision-making processes that could counteract the minority's interests.

Question 6

In 2011, final approval by the U.S. Congress was given to free-trade agreements with __________.

Accepted Answer

The question is asking for the free-trade agreements finalized by the U.S. Congress in 2011. The correct answer is A, as Colombia, South Korea (Republic of Korea), and Panama were the countries that had their free-trade agreements finalized by the U.S. Congress in 2011.

Question 7

Briefly describe the evolution of U.S. trade policy since the imposition of the famous Smoot-Hawley tariff. What has happened to the level of tariffs over the period? To the level of protection in general?

Accepted Answer

The answer of Briefly describe the evolution of U.S. trade...

Question 8

The feature of U.S. trade legislation whereby a negotiated trade agreement (negotiated by The Executive Branch) can only be voted on in a "yea" or "nay" fashion (with no Amendments) by the Congress is known as

Accepted Answer

The feature described is commonly known as "fast-track" (also referred to as Trade Promotion Authority). This allows the President to negotiate a trade agreement and submit it to Congress for approval through a yes or no vote, without amendments or any modifications to the agreement. This gives the Executive Branch more control over the trade negotiation process and promotes faster and more efficient trade agreements.

Question 9

Compare and contrast "rules-based" trade policy with "results-based" trade policy. On which type is the GATT based? Which type is consistent with the "new reciprocity" approach to trade policy?

Accepted Answer

The answer of Compare and contrast "rules-based" trade policy with...

Question 10

Do you think that the developing countries should be given special, favorable treatment in multilateral trade negotiations? Why or why not? Has such treatment been given to developing countries in the past? Explain.

Accepted Answer

The answer of Do you think that the developing countries...

Question 11

Which of the following is generally thought to have established the highest tariffs in U.S. history?

Accepted Answer

The Tariff Act of 1930, also known as the Smoot-Hawley tariff, is generally considered to have established the highest tariffs in U.S. history. The act raised tariffs on more than 20,000 imported goods, contributing to a reduction in international trade and exacerbating the Great Depression. The other options listed were focused on either reducing tariffs or facilitating international trade.

Question 12

The use of a bilateral, item-by-item approach best characterizes which period of trade negotiations?

Accepted Answer

The Reciprocal Trade Agreements negotiations are best characterized by the use of a bilateral, item-by-item approach. This method involved negotiating tariff reductions on a product-by-product basis with individual trading partners, rather than seeking broad, multilateral agreements.

Question 13

The first U.S. legislation to authorize "adjustment assistance" for workers displaced by tariff reductions was the

Accepted Answer

The Trade Expansion Act of 1962 was the first U.S. legislation to authorize "adjustment assistance" for workers displaced by tariff reductions, aiming to help those affected by international trade agreements adapt to new economic conditions.

Question 14

Small groups may gain at the expense of the majority when

Accepted Answer

All of the options listed contribute to the phenomenon of small groups benefiting at the expense of the majority. If voters perceive that there are costs associated with voting, they may be less likely to vote in elections where their interests are not strongly represented. When small group solidarity is high and there is little free-riding, small groups may be more effective at lobbying for policies that benefit their members at the expense of the majority. Additionally, when the expected benefits of policies are small on an individual basis, individuals may not have an incentive to engage in collective action to oppose policies that benefit small groups at their expense. Thus, all of these factors contribute to the ability of small groups to gain at the expense of the majority.

Question 15

The average level of tariffs in developing countries, which is __________ the average Level of tariffs in the developed countries, __________ after the conclusion of the Uruguay Round of trade negotiations.

Accepted Answer

The average level of tariffs in developing countries is generally higher than in developed countries, and it fell after the conclusion of the Uruguay Round of trade negotiations, which aimed at reducing trade barriers worldwide.

Question 16

The concept of "results-based" trade policy

Accepted Answer

The "results-based" trade policy is embodied in the "new reciprocity" approach, which focuses on achieving specific outcomes or results in trade agreements rather than just adhering to traditional free trade principles.

Question 17

The World Trade Organization

Accepted Answer

The World Trade Organization is charged with implementing the agreements reached in the Uruguay Round of Trade negotiations, including the General Agreement on Tariffs and Trade (GATT). It does not prevent member countries from adopting their own trade policy objectives, nor does it require them to eliminate all barriers to imports or adopt common labor standards.

Question 18

The most recently successfully completed GATT/WTO "round" or set of multilateral Trade negotiations was the

Accepted Answer

The Uruguay Round, concluded in 1994, is the most recent successfully completed set of multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO) framework. It led to the creation of the WTO.

Question 19

Briefly outline the focus of the Uruguay Round of trade negotiations, as well as the focus of the Doha Development Agenda.

Accepted Answer

The answer of Briefly outline the focus of the Uruguay...

Question 20

After the implementation of the tariff reductions agreed to in the Uruguay Round of Multilateral trade negotiations, the average level of tariffs in developed countries was __________.

Accepted Answer

After the implementation of the Uruguay Round, the average level of tariffs in developed countries was between 0 percent and 5 percent, significantly lower than before the negotiations.

Quiz 16: Political Economy and Us Trade Policy

If some of a country's resources are devoted to the provision of bribes and other incentives to legislators so as to influence voting behavior on particular policies, these actions ; the actions are referred to by economists as .

The successful Uruguay Round of trade negotiations transformed the then-existing sponsoring agency into the , which began operation in .

Recent polling work discussed in the text pertaining to attitudes toward international trade suggests that Americans have . Another finding is that greater inequality in a country seems to be positively associated with a greater desire .