AGB 302 ASU final Questions with 100- Correct Answers.

AGB 302 ASU final Questions with 100% Correct
Answers



__ refers to a situation where a government does not attempt to influence through quotas or duties what
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



its citizens can buy from another country - Correct Answer - Free Trade
ty ty ty ty ty ty ty ty ty ty ty ty ty ty




__ stresses that in some cases countries specialize in the production and export of particular products
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



because the world market can support only a limited number of firms - Correct Answer - New Trade
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



Theory
ty




__ supports the idea that countries should export more than what they import - Correct Answer -
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



Mercantalism
ty




__ argued that countries should specialize in the production of goods for which they have an absolute
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



advantage - Correct Answer - Adam Smith
ty ty ty ty ty ty ty ty




The production possibility frontier will be __ if constant return to specialization is observed - Correct
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



Answer - a straight line
ty ty ty ty ty




The Heckscher-Ohlin theory predicts that countries will - Correct Answer - export those goods that make
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



intensive use of factors that are locally abundant
ty ty ty ty ty ty ty ty




The ___ argues that a large proportion of the world's new products had been developed by U.S. firms -
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



Correct Answer - product life-cycle theory
ty ty ty ty ty ty ty




The variety of goods that a country can produce is limited by the size of the market in industries where __
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



are important - Correct Answer - economies of scale
ty ty ty ty ty ty ty ty ty ty




which of the following refers to a situation where a government does not attempt to influence through
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



quotas or duties what its citizens can boy from another country - Correct Answer - Free Trade
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty




which of the following is a major flaw associated with mercantilism? - Correct Answer - Mercantilists
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



view trade as a zero-sum game
ty ty ty ty ty ty




__ is a quota on trade imposed by the exporting country, typically at the request of the importing
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



country's government - Correct Answer - voluntary export restraint
ty ty ty ty ty ty ty ty ty ty




Tariff rate quotas are common in agriculture, where their goal is to : - Correct Answer - limit imports
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



over quota
ty ty




what is true about a voluntary export restraint - Correct Answer - it benefits domestic producers by
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



limiting import competition
ty ty ty




According to the Buy America Act, if a company wishes to win a contract from a U.S. government agency
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



to provide some equipment, it must ensure that at least 51 percent of the product by value is
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty



manufactured in the United States. This is an example of: - Correct Answer - local content requirements
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty




__ is variously defined as selling goods in a foreign market at below their costs of production or as selling
ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty ty