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BUSHMR 2000 Exam 2 Questions and Answers | Latest Update 2024/2025

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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 volunt...

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1 | P a g e | © copyright 2024/2025 | Grade A+


BUSHMR 2000 Exam 2 Questions and
Answers | Latest Update 2024/2025
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

quota rent




Master01 | September, 2024/2025 | Latest update

, 2 | P a g e | © copyright 2024/2025 | Grade A+

✓ ~~> 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.




Master01 | September, 2024/2025 | Latest update

, 3 | P a g e | © copyright 2024/2025 | Grade A+

________ 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




Master01 | September, 2024/2025 | Latest update

, 4 | P a g e | © copyright 2024/2025 | Grade A+

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




Master01 | September, 2024/2025 | Latest update

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