ECN 306 Exam 2 Study Guide 2026 | Economics Review, Practice Questions &
Test Prep
If both France and Germany are in the European Union, then the European Union has - correct
answer ✔✔Made it harder for Americans to compete against Germans in the French Market
IMF conditionality refers to the - correct answer ✔✔changes a country must make in order to
receive IMF financial assistance.
GATT - correct answer ✔✔From the late 1940s until the creation of the WTO, the organization
that was primarily responsible for conducting rounds of trade negotiations was the
With a partial trade agreement - correct answer ✔✔two or more countries agree to liberalize
trade in a selected group of categories.
Trade diversion and Trade creation - correct answer ✔✔Assume Canada imports 100 million
tons of steal annually from Germany. Now suppose that after the United States, Canada, and
Mexico form a free-trade area, Canada begins importing the 110 million tons of steel from
Mexico. This is an example of
Regional trade agreements - correct answer ✔✔Which of the following is NOT an example of an
international public good?
the WTO - correct answer ✔✔The international organization that serves as a forum for trade
discussions and the development of trade rules is called
to begin establishing rules on subsidies - correct answer ✔✔The Tokyo Round of the GATT
negotiations was notable because it was the first round
, the same as its other trading partners - correct answer ✔✔Most favored nation (MFN) status
means that a country treats another country
North American Free Trade Association - correct answer ✔✔Which regional trade agreement
permits free trade among its members for all goods, while each member maintains freedom in
its trade policies towards non-member countries?
Agriculture and apparel - correct answer ✔✔Until the Uruguay Round of trade negotiations,
which of the following sectors were NOT included in the rules for international trade?
nonrival. - correct answer ✔✔If a good or service does not get used up as it is consumed, then
it is said to be
provide capital to underdeveloped countries. - correct answer ✔✔The primary mission of the
World Bank today is to
China is treated the same as other U.S. trading partners. - correct answer ✔✔When the United
States gives MFN status to China, it means that
Intercede by invitation when countries cannot pay their international debts. - correct answer
✔✔One of the most important and most visible roles of the IMF is to
A common tax system and common currency - correct answer ✔✔The implementation of a
Customs Union involves all of the following EXCEPT
It creates a free-riding problem. - correct answer ✔✔Which of the following criticisms is NOT
directed at the IMF?
an economic union. - correct answer ✔✔The United States is an example of
Test Prep
If both France and Germany are in the European Union, then the European Union has - correct
answer ✔✔Made it harder for Americans to compete against Germans in the French Market
IMF conditionality refers to the - correct answer ✔✔changes a country must make in order to
receive IMF financial assistance.
GATT - correct answer ✔✔From the late 1940s until the creation of the WTO, the organization
that was primarily responsible for conducting rounds of trade negotiations was the
With a partial trade agreement - correct answer ✔✔two or more countries agree to liberalize
trade in a selected group of categories.
Trade diversion and Trade creation - correct answer ✔✔Assume Canada imports 100 million
tons of steal annually from Germany. Now suppose that after the United States, Canada, and
Mexico form a free-trade area, Canada begins importing the 110 million tons of steel from
Mexico. This is an example of
Regional trade agreements - correct answer ✔✔Which of the following is NOT an example of an
international public good?
the WTO - correct answer ✔✔The international organization that serves as a forum for trade
discussions and the development of trade rules is called
to begin establishing rules on subsidies - correct answer ✔✔The Tokyo Round of the GATT
negotiations was notable because it was the first round
, the same as its other trading partners - correct answer ✔✔Most favored nation (MFN) status
means that a country treats another country
North American Free Trade Association - correct answer ✔✔Which regional trade agreement
permits free trade among its members for all goods, while each member maintains freedom in
its trade policies towards non-member countries?
Agriculture and apparel - correct answer ✔✔Until the Uruguay Round of trade negotiations,
which of the following sectors were NOT included in the rules for international trade?
nonrival. - correct answer ✔✔If a good or service does not get used up as it is consumed, then
it is said to be
provide capital to underdeveloped countries. - correct answer ✔✔The primary mission of the
World Bank today is to
China is treated the same as other U.S. trading partners. - correct answer ✔✔When the United
States gives MFN status to China, it means that
Intercede by invitation when countries cannot pay their international debts. - correct answer
✔✔One of the most important and most visible roles of the IMF is to
A common tax system and common currency - correct answer ✔✔The implementation of a
Customs Union involves all of the following EXCEPT
It creates a free-riding problem. - correct answer ✔✔Which of the following criticisms is NOT
directed at the IMF?
an economic union. - correct answer ✔✔The United States is an example of
