452 AGEC Rosson Exam Study Guide
When the share of income spent on food declines as consumer incomes rise, this is
referred to as - ANSWER Engel's Law
Countries that serve as a buffer between the functioning core nations and the
non-integrating gap may be referred to as - ANSWER Seam States
Reasons for growth in global food trade include all of the following except - ANSWER
More people
Dietary transition in developing countries may be best described as - ANSWER
consumption of more animal protein sources instead of plant staple carbohydrates
using the three panel diagram, the point at which supply and demand are equal in the
importing country has what value on the horizontal axis in the trade sector - ANSWER
zero
Free trade makes everyone better off if and only if - ANSWER Those who gain
compensate those who lose
Which of the following best describes the trade effects - ANSWER What happens to
production, consumption, prices, exports and imports
Which of the following is a concept associated with competitive advantage - ANSWER
opportunity cost
An ad valorem import duty is best described by which of the following - ANSWER Fixed
percentage of the value of an imported good
Which of the following was NOT discussed in class as being justification for restricting
trade - ANSWER A) infant industry argument
B) National security
C) Sanitary and/or Phytosanitary reasons
D) None of the above
Answer: None of the Above
Which of the following was NOT created by the Bretton Woods Agreement - ANSWER
World Trade Organizations
What is the overall goal of the World Bank - ANSWER Poverty reduction
The purpose of the international Monetary Fund are - ANSWER A) Exchange rate
stability
, B) International Monetary cooperation
C) Poverty reduction
D) All of the above
Answer: All of the Above
Which round of GATT negotiations was most effective in liberalizing trade in agriculture
- ANSWER Uruguay Round
World Trade Organizations principles include all of the following except - ANSWER Use
of quotas restrict trade
The two most important choke points potentially affecting global oil trade are - ANSWER
Strait of Hormuz & Strait of Malacca
The organization for economic Cooperation and Development (OECD) does all of the
following except - ANSWER A) economic analysis
B) Forum for meetings among 31 member countries
C) Committed to Democracy
D) Forms trade agreements among member countries
Answer: D
Which of the following best describes the role of the US oil refining since the early 1970s
- ANSWER Number of refineries has fallen, while refining capacity has increased
The purpose of the Organization of Petroleum Exporting Countries (OPEC) is to -
ANSWER Raises prices by rationing oil supplies
People seldom meet, even for parties but the conversation turns to some contrivance to
raise prices: is paraphrasing what famous economist - ANSWER Adam Smith
List the Three Pillars of Doha - ANSWER 1. Market Access
2. Export Competition
3. Trade Distorting Domestic Support
What does market Access mean in Doha - ANSWER reduce the highest tariffs the most
What does Export Competition mean in Doha - ANSWER Eliminate export subsidies by a
given date
What does Trade Distorting Domestic Support refer to in Doha - ANSWER Reduce farm
program payments that distort production and trade
Which policy classification indicator (color) includes the most trade distorting policies?
When the share of income spent on food declines as consumer incomes rise, this is
referred to as - ANSWER Engel's Law
Countries that serve as a buffer between the functioning core nations and the
non-integrating gap may be referred to as - ANSWER Seam States
Reasons for growth in global food trade include all of the following except - ANSWER
More people
Dietary transition in developing countries may be best described as - ANSWER
consumption of more animal protein sources instead of plant staple carbohydrates
using the three panel diagram, the point at which supply and demand are equal in the
importing country has what value on the horizontal axis in the trade sector - ANSWER
zero
Free trade makes everyone better off if and only if - ANSWER Those who gain
compensate those who lose
Which of the following best describes the trade effects - ANSWER What happens to
production, consumption, prices, exports and imports
Which of the following is a concept associated with competitive advantage - ANSWER
opportunity cost
An ad valorem import duty is best described by which of the following - ANSWER Fixed
percentage of the value of an imported good
Which of the following was NOT discussed in class as being justification for restricting
trade - ANSWER A) infant industry argument
B) National security
C) Sanitary and/or Phytosanitary reasons
D) None of the above
Answer: None of the Above
Which of the following was NOT created by the Bretton Woods Agreement - ANSWER
World Trade Organizations
What is the overall goal of the World Bank - ANSWER Poverty reduction
The purpose of the international Monetary Fund are - ANSWER A) Exchange rate
stability
, B) International Monetary cooperation
C) Poverty reduction
D) All of the above
Answer: All of the Above
Which round of GATT negotiations was most effective in liberalizing trade in agriculture
- ANSWER Uruguay Round
World Trade Organizations principles include all of the following except - ANSWER Use
of quotas restrict trade
The two most important choke points potentially affecting global oil trade are - ANSWER
Strait of Hormuz & Strait of Malacca
The organization for economic Cooperation and Development (OECD) does all of the
following except - ANSWER A) economic analysis
B) Forum for meetings among 31 member countries
C) Committed to Democracy
D) Forms trade agreements among member countries
Answer: D
Which of the following best describes the role of the US oil refining since the early 1970s
- ANSWER Number of refineries has fallen, while refining capacity has increased
The purpose of the Organization of Petroleum Exporting Countries (OPEC) is to -
ANSWER Raises prices by rationing oil supplies
People seldom meet, even for parties but the conversation turns to some contrivance to
raise prices: is paraphrasing what famous economist - ANSWER Adam Smith
List the Three Pillars of Doha - ANSWER 1. Market Access
2. Export Competition
3. Trade Distorting Domestic Support
What does market Access mean in Doha - ANSWER reduce the highest tariffs the most
What does Export Competition mean in Doha - ANSWER Eliminate export subsidies by a
given date
What does Trade Distorting Domestic Support refer to in Doha - ANSWER Reduce farm
program payments that distort production and trade
Which policy classification indicator (color) includes the most trade distorting policies?
