ECO 336 USM TRAINING STUDY SHEET
2026 UPDATED QUESTIONS AND ANSWERS
◉When the United States gives MFN status to China, it means that
A.
China is treated the same as other U.S. trading partners.
B.
China is treated worse than other U.S. trading partners.
C.
China is legally bound to reciprocate.
D.
China is treated better than other U.S. trading partners. Answer: A
◉Which of the following is FALSE?
A.
A common market is more deeply integrated than an economic
union.
B.
The European Union is a deeper form of integration than NAFTA.
C.
,Common markets allow for labor mobility between participating
nations.
D.
NAFTA is an example of a free trade area. Answer: A
◉The Tokyo Round of the GATT negotiations was notable because it
was the first round
A.
to begin discussions of exchange rates.
B.
that included Japan.
C.
that included textiles and apparel.
D.
to begin establishing rules on subsidies. Answer: D
◉If a good or service does not get used up as it is consumed, then it
is said to be
A.
nonrival.
B.
nondiscrimination.
,C.
nonconsumable.
D.
nonexcludable. Answer: A
◉Which of the following is TRUE?
A.
A common market is more deeply integrated than a customs union.
B.
NAFTA is an example of a customs union.
C.
The European Union is a shallower and broader form of integration
than NAFTA.
D.
Customs unions require the creation of a common currency. Answer:
A
◉A country possesses a comparative advantage in the production of
a product if
A.
it possesses an absolute advantage in the production of this good
compared to its trading partners.
B.
, it is able to produce less of this good per worker than its trading
partners.
C.
the opportunity cost, in terms of the amount of other products that
it gives up to produce this product, is lower than it is for its trading
partners.
D.
it can produce more of this good per hour than its trading partners.
Answer: C
◉A country is likely to be better off in the long run if it pursues self
sufficiency.
True
False Answer: False
◉If a country has lower overall productivity levels than its trading
partners, then it will
A.
have a lower standard of living than its trading partners.
B.
be unable to export.
C.
not be able to obtain gains from trade.
2026 UPDATED QUESTIONS AND ANSWERS
◉When the United States gives MFN status to China, it means that
A.
China is treated the same as other U.S. trading partners.
B.
China is treated worse than other U.S. trading partners.
C.
China is legally bound to reciprocate.
D.
China is treated better than other U.S. trading partners. Answer: A
◉Which of the following is FALSE?
A.
A common market is more deeply integrated than an economic
union.
B.
The European Union is a deeper form of integration than NAFTA.
C.
,Common markets allow for labor mobility between participating
nations.
D.
NAFTA is an example of a free trade area. Answer: A
◉The Tokyo Round of the GATT negotiations was notable because it
was the first round
A.
to begin discussions of exchange rates.
B.
that included Japan.
C.
that included textiles and apparel.
D.
to begin establishing rules on subsidies. Answer: D
◉If a good or service does not get used up as it is consumed, then it
is said to be
A.
nonrival.
B.
nondiscrimination.
,C.
nonconsumable.
D.
nonexcludable. Answer: A
◉Which of the following is TRUE?
A.
A common market is more deeply integrated than a customs union.
B.
NAFTA is an example of a customs union.
C.
The European Union is a shallower and broader form of integration
than NAFTA.
D.
Customs unions require the creation of a common currency. Answer:
A
◉A country possesses a comparative advantage in the production of
a product if
A.
it possesses an absolute advantage in the production of this good
compared to its trading partners.
B.
, it is able to produce less of this good per worker than its trading
partners.
C.
the opportunity cost, in terms of the amount of other products that
it gives up to produce this product, is lower than it is for its trading
partners.
D.
it can produce more of this good per hour than its trading partners.
Answer: C
◉A country is likely to be better off in the long run if it pursues self
sufficiency.
True
False Answer: False
◉If a country has lower overall productivity levels than its trading
partners, then it will
A.
have a lower standard of living than its trading partners.
B.
be unable to export.
C.
not be able to obtain gains from trade.
