Multiple Choice Quiz


1	NAFTA is intended to foster trade in/among
		A)	North America.
		B)	Tribal Africa.
		C)	Allied Forces.
		D)	The world.


2	GATT is an agreement that
		A)	is global in scope.
		B)	is for Western nations only.
		C)	is for European nations only.
		D)	is for poor nations only.


3	The WTO enforces its pronouncements
		A)	through taxes on nations that violate its pronouncements.
		B)	with an army.
		C)	through members' promises to abide by them.
		D)	through the threat of jail.


4	Economists generally view trade as a _______ proposition for the trading partners.
		A)	zero-sum
		B)	win-win
		C)	win-lose
		D)	lose-lose


5	Trade agreements are often required to maintain free trade because
		A)	countries may limit trade for internal political reasons.
		B)	countries may benefit from "strategic trade policies" that benefit them but which cost their competitors more.
		C)	tariffs are always in the importing country's best interest.
		D)	a) and b)


6	Trade agreements prevent or limit the use of
		A)	tariffs.
		B)	sales taxes.
		C)	income taxes.
		D)	"buy American" ad campaigns.


7	NAFTA was
		A)	envisioned, negotiated and passed under the President Reagan.
		B)	envisioned by President Reagan but negotiated and passed under President Bush (41).
		C)	envisioned by President Reagan, negotiated by President Bush (41) and passed under President Clinton.
		D)	envisioned, negotiated and passed under the President George W. Bush (43).


8	The Battle in Seattle and other protests against trade agreements and organizations have made the point that
		A)	trade can adversely impact American jobs.
		B)	trade can adversely impact environmental and child labor standards.
		C)	trade benefits the working classes.
		D)	a) and b)


9	Economists generally view NAFTA as
		A)	an unqualified failure; trade is less now than when it was enacted.
		B)	a qualified success; trade is slightly greater than it would otherwise have been.
		C)	an unqualified success; trade is vastly greater than it would otherwise have been.
		D)	a waste of time and energy.


10	Economists generally believe that the gain to the gainers in free trade
		A)	is less than the loss to the losers so trade is a net loser.
		B)	is equal to the loss to the losers so trade is a net zero.
		C)	is greater than the loss to the losers so that there is enough gain that, with sufficient retraining, even the losers can be gainers.
		D)	is for them to enjoy and the losers must fend for themselves.

2003 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.