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BUSHMR 2000 Exam 2 Questions and Correct Answers the Latest Update and Recommended Version
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BUSHMR 2000 Exam 2 Questions and Correct Answers the Latest Update and Recommended Version
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2 0 2 4 /2025 | © copyright | This work may not be copied for profit gain Excel!BUSHMR 2000 Exam 2 Questions and
Correct Answers the Latest Update and
Recommended Version
In order to encourage the agricultural industry, the French government provided low-interest
loans for the purchase of seeds and fertilizers. The government also gave cash grants and
made tax reductions. Which instrument of trade policy is being used by the French
government?
tariffs
voluntary export restraints
subsidies
local content requirements
import quotas
→ subsidies
A(n) ________ refers to the extra profit that producers make when supply is artificially limited
by an import quota.
profit margin
net profit
import profit
trade surplus
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,2 0 2 4 /2025 | © copyright | This work may not be copied for profit gain Excel!
quota rent
→ quota rent
Italy has a direct restriction on the amount of metal products that may be imported into the
country. Which instrument of trade policy does this reflect?
voluntary import restraint
tariff rate quota
export ban
import quota
quota rent
→ import quota
How did the Smoot-Hawley Act affect employment?
It created more jobs domestically and abroad.
It decreased the overall wage rate.
It boosted job rates around the world.
It did not have any effect on employment.
It had a damaging effect on employment abroad.
→ It had a damaging effect on employment abroad.
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________ is variously defined as selling goods in a foreign market at below their costs of
production or as selling goods in a foreign market at below their "fair" market value.
Circular trade
Subsidy
Barter
Countertrade
Dumping
→ Dumping
A tax of 32 cents is levied for each pair of eyeglasses imported into a nation. This is an
example of a(n)
quota rent.
specific tariff.
ad valorem tariff.
import quota.
local content requirement.
→ specific tariff.
High tariff barriers and subsidies in the agricultural industry ultimately lead to
1|Page| GradeA+ | 2 0 0 2 5
, 2 0 2 4 /2025 | © copyright | This work may not be copied for profit gain Excel!
the lack of overproduction of products.
an increased volume of agricultural trade.
increased prices for consumers.
stronger competition from foreign suppliers.
lower overall prices for the end-user.
→ increased prices for consumers.
A tariff rate quota provides a lower tariff rate to
all imports in a specific industry.
imports within the quota.
only domestic producers.
agricultural products.
imports that are over the quota.
→ imports within the quota.
A foreign government was not enforcing its intellectual property rights, which resulted in
massive copyright infringements. In turn, this was costing U.S. companies millions of dollars in
lost sales revenues. To force the country to play by the rules, the United States threatened to
impose trade sanctions on a range of imports from the country's businesses. The underlying
motive for intervention by the U.S government was
to protect national security.
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