ECON 306 ASU Exam 2 With Correct
Answers 2025
binds the tariffs and trade policies of nations and limits arbitrary changes -(correct answer)The
General agreement on trades and tariffs assists developing nations through the provisions of
loans and advice -(correct answer)The World Bank Provides technical advise and expertise to
national governments -(correct answer)The international monetary fund provides rules for the
resolution of trade disputes between nations -(correct answer)The world trade organization
acts as a forum for the discussion and implementation of further reductions in trade barriers
-(correct answer)the world trade organization Why was the IMF (international monetary fund)
created? -(correct answer)to manage the system of fixed exchange rates after WWII What is
the relationship between GATT and WTO? -(correct answer)WTO continues and expands the
efforts of GATT Trading agreement that allows discriminatory treatment against non members
-(correct answer)Regional Trade Agreements or Trade Blocs which list places regional trade
agreements in an order moving from the least provisions to the most? -(correct answer)Free
trade area, common market, economic union Suppose the U.S. imports wool from low-cost
producer New Zealand. If the U.S. signed a regional trade agreement with Britain (assume
Britain produces wool at a higher cost than New Zealand) that lowers tariffs on British
wool, it is possible that the U.S. might switch to importing wool from Britain. Such an outcome
illustrates the potential for regional trade agreements to -(correct answer)bring about "Trade
Diversion" which is harmful to the world economy. Public goods differ from private goods in
that the former are... -(correct answer)non-excludable, non-diminishable, and often provided
collectively Allows goods and services to cross international borders without paying a tariff and
without limitations imposed by quotas. -(correct answer)Free Trade area Allows goods and
services to cross international borders without paying a tariff and without limitations imposed
by quotas plus a common set of tariffs toward nonmembers plus an agreement to allow the
free mobility of inputs such as labor and capital. -(correct answer)Common Market Allows
goods and services to cross international borders without paying a tariff and without limitations
Answers 2025
binds the tariffs and trade policies of nations and limits arbitrary changes -(correct answer)The
General agreement on trades and tariffs assists developing nations through the provisions of
loans and advice -(correct answer)The World Bank Provides technical advise and expertise to
national governments -(correct answer)The international monetary fund provides rules for the
resolution of trade disputes between nations -(correct answer)The world trade organization
acts as a forum for the discussion and implementation of further reductions in trade barriers
-(correct answer)the world trade organization Why was the IMF (international monetary fund)
created? -(correct answer)to manage the system of fixed exchange rates after WWII What is
the relationship between GATT and WTO? -(correct answer)WTO continues and expands the
efforts of GATT Trading agreement that allows discriminatory treatment against non members
-(correct answer)Regional Trade Agreements or Trade Blocs which list places regional trade
agreements in an order moving from the least provisions to the most? -(correct answer)Free
trade area, common market, economic union Suppose the U.S. imports wool from low-cost
producer New Zealand. If the U.S. signed a regional trade agreement with Britain (assume
Britain produces wool at a higher cost than New Zealand) that lowers tariffs on British
wool, it is possible that the U.S. might switch to importing wool from Britain. Such an outcome
illustrates the potential for regional trade agreements to -(correct answer)bring about "Trade
Diversion" which is harmful to the world economy. Public goods differ from private goods in
that the former are... -(correct answer)non-excludable, non-diminishable, and often provided
collectively Allows goods and services to cross international borders without paying a tariff and
without limitations imposed by quotas. -(correct answer)Free Trade area Allows goods and
services to cross international borders without paying a tariff and without limitations imposed
by quotas plus a common set of tariffs toward nonmembers plus an agreement to allow the
free mobility of inputs such as labor and capital. -(correct answer)Common Market Allows
goods and services to cross international borders without paying a tariff and without limitations
