Reference no: EM13378131

1.________ occurs when a firm cuts prices below production costs in a deliberate attempt to drive competitors out of business.
a. Voracious dumping
b. Ravaging dumping
c. Predatory dumping
d. Deliberate dumping

2.If a country bans the importation of a particular good, the market equilibrium is shown by the intersection of the foreign demand curve and the domestic supply curve.
True
False

4.The argument that calls for the trade protection of only newly developing industries is known as the ________ argument.
a. learning by doing
b. predatory dumping
c. infant industry
d. developing nation

6.Which of the following trade agreements provides for the development of a single market among its members?
a. North American Free Trade Agreement
b. World Trade Organization
c. European Union
d. Asian Pacific Economic Cooperation

8.An import quota, 
a. limits the amount of a good that can be imported, thus decreasing prices.
b. limits the amount of a good that can be imported, thus increasing prices.
c. increases the amount of a good imported, thus decreasing prices.
d. increases the amount of a good imported, thus increasing prices.

9.Suppose Panama produces only two goods, bananas and hats. If Panama has a comparative advantage in bananas, a move toward free trade will, 
a. harm hat workers, benefit banana workers, but benefit the nation as a whole.
b. harm hat workers, harm banana workers, but benefit the nation as a whole.
c. benefit hat workers, harm banana workers, but harm the nation as a whole.
d. benefit hat workers, harm banana workers, but benefit the nation as a whole.

10.An import quota is the same as an import ban. 
True
False