International Economics, 7e (Husted/Melvin)
Chapter 10 International Trade and Economic Growth
Multiple-Choice Questions
1)
________ policies refer to government programs designed to exploit natural comparative
advantage by increasing production of a few export goods most closely related to a
country's resource base.
A)
Comparative advantage
B)
Primary-export-led development
C)
Import-substitution development
D)
Inward-looking development
Answer
:
B
2)
________ policies seek to promote rapid industrialization by erecting high barriers to foreign
goods to encourage local production,
A)
Comparative advantage
B)
Primary-export-led development
C)
Import-substitution development
D)
Outward-looking development
Answer
:
C
3)
1
,________ policies involve government support for manufacturing sectors in which a country
has potential comparative advantage.
A)
Comprehensive development
B)
Primary-export-led development
C)
Import-substitution development
D)
Outward-looking development
Answer
:
D
4)
Developing countries that concentrate production in agricultural products or raw materials
may face a secular decline in their international terms of trade due to
A)
sluggish demand for these products in developed countries.
B)
large increases in the supplies of these products on world markets due to export expansion
policies.
C)
inelastic demand for these products in developed countries.
D)
All of the above.
Answer
:
D
5)
Recently, many developing countries throughout the world have begun to institute policies
that seek to
A)
liberalize international trade by lowering trade barriers.
2
, B)
reduce dependence on international trade by raising trade barriers.
C)
reduce dependence on international trade by instituting laws that call for buying only
domestically made goods.
D)
Two of the above.
Answer
:
A
3
Chapter 10 International Trade and Economic Growth
Multiple-Choice Questions
1)
________ policies refer to government programs designed to exploit natural comparative
advantage by increasing production of a few export goods most closely related to a
country's resource base.
A)
Comparative advantage
B)
Primary-export-led development
C)
Import-substitution development
D)
Inward-looking development
Answer
:
B
2)
________ policies seek to promote rapid industrialization by erecting high barriers to foreign
goods to encourage local production,
A)
Comparative advantage
B)
Primary-export-led development
C)
Import-substitution development
D)
Outward-looking development
Answer
:
C
3)
1
,________ policies involve government support for manufacturing sectors in which a country
has potential comparative advantage.
A)
Comprehensive development
B)
Primary-export-led development
C)
Import-substitution development
D)
Outward-looking development
Answer
:
D
4)
Developing countries that concentrate production in agricultural products or raw materials
may face a secular decline in their international terms of trade due to
A)
sluggish demand for these products in developed countries.
B)
large increases in the supplies of these products on world markets due to export expansion
policies.
C)
inelastic demand for these products in developed countries.
D)
All of the above.
Answer
:
D
5)
Recently, many developing countries throughout the world have begun to institute policies
that seek to
A)
liberalize international trade by lowering trade barriers.
2
, B)
reduce dependence on international trade by raising trade barriers.
C)
reduce dependence on international trade by instituting laws that call for buying only
domestically made goods.
D)
Two of the above.
Answer
:
A
3
