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1)       A significant difference
between Free Trade Associations and Customs Unions is that:

a)         Customs Unions
are temporary and limited in time

b)         Customs
Unions can not enact Tariffs on goods from non-members

c)         Customs
Unions require inspection of all goods entering a country

d)         Customs
Unions can require all members to have common trade policies with
all non-members

e)         Customs
Unions are unique to Britain and its former colonies

2)       Turkey and Kenya have a
Floating Currency Exchange arrangement. If Turkish demand for
Kenyan goods increases, the resulting trade will:

a)         Increase the
value of Turkish currency against Kenyan currency

b)         Increase the
value of Kenyan currency against Turkish currency

c)         Increase the
value of both currencies against all world currencies

d)         Decrease the
value of both currencies against all world currencies

e)         Have no
effect on the currency valuation

3)       One challenge in current
US-China Trade Policy is that

           
a)         China has
Comparative Advantage in all products

           
b)         China does not
permit its currency to freely float against the dollar

           
c)         China is a
member of multiple Free Trade Associations

           
d)         There are heavy
Tariffs on all Chinese goods imported to the US

           
e)         China’s
population is so much larger than the United States

4)       If the strength of a
currency changes based on how much the citizens of one nation are
buying from a foreign nation, this currency is said to be

a) Floating

b) Pegged

c) On a Gold Standard

d) In Disequilibrium

e) Protectionist

5)       Often, government leaders
will propose tariffs to protect domestic industries. If enacted,
which of the following is likely to occur in that nation’s
macroeconomy?

a)         Lower prices for
consumers

b)         A shift to
the left in the nations Aggregate Supply

c)         Higher prices
for that good, and thus, lower disposable income for consumers

d)         An increase
in Aggregate Demand for all goods and services in the economy

e)         An increasing
in personal levels of savings

6)       Which of the following
could be a positive effect of a decline in the value of US
Currency?

           
a)         Consumers would
pay lower prices for imported goods

           
b)         US exporters
would be more competitive in international markets

           
c)         US importers
would be more competitive in international markets

           
d)         China would be
less willing to export goods to the US

           
e)         The US would be
released from NAFTA standards