Agriculture, clothing, and textiles are singled out for treatment in the chapter because
A) they tend to be the most highly protected sectors of industrial economies.
B) they tend to be the least-protected sectors internationally.
C) the policies of high-income nations in these sectors may have harmful effects in low-income countries.
D) A and C are both correct.
E) B and C are both correct.
Question 2 - As of 2008, the members of the WTO account for what percentage of world trade?
A) 3 percent.
B) 23 percent.
C) 57 percent.
D) 97 percent
Question 3 - Which round of GATT first addressed subsidies?
What will be an ideal response?
Question 4 - If a country has a bowed out (concave to the origin) production possibility frontier, then production is said to be subject to
A) constant opportunity costs.
B) decreasing opportunity costs.
C) first increasing and then decreasing opportunity costs.
D) increasing opportunity costs.
Question 5 - A flexible exchange rate system crisis involves
A) a revaluation of the currency.
B) a rapid and uncontrolled depreciation of the currency.
C) a decrease in the dollar value of the country's international debt.
D) a sure political collapse of the ruling government.
E) All of the above.
Question 6 - Which of the following was one of the most important achievements of the Uruguay Round of trade talks?
A) The creation of the WTO.
B) The creation of the IMF.
C) The creation of the World Bank.
D) The creation of the GATT organization for international trade.
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