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Introduction to agricultural economics

John B. Penson, Jr&Oral Capps, Jr.&C. Parr Rosson III&Richard T. Woodward

Chapter 18

Agricultural Trade Policy and Preferential Trading Arrangements - all with Video Answers

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Chapter Questions

01:09

Problem 1

Under autarky, each nation operates as a closed economy and market equilibrium is determined solely by the interaction of domestic supply and demand conditions. T F

Anitha Mary
Anitha Mary
Numerade Educator

Problem 2

Excess supply is the amount by which quantity demanded exceeds quantity supplied for each price level above equilibrium. T F

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07:07

Problem 3

Protectionism occurs when government policy is implemented to remedy domestic economic problems associated with excessive exports. T F

Ansh Varma
Ansh Varma
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02:39

Problem 4

The infant industry argument says that new firms need to be protected until their products become widely known in the market. T F

Akash M
Akash M
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Problem 5

Nontariff barriers reduce imports and limit the domestic production of goods that substitute for imports. $\mathrm{T} \mathrm{F}$

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01:38

Problem 6

Tarrification is the process whereby quotas, licenses, variable levies, and other nontariff barriers to trade are converted to their tariff equivalents. $\mathrm{T} \quad \mathrm{F}$

Daniel Cisneros
Daniel Cisneros
Numerade Educator
05:31

Problem 7

Some of the net welfare effects of a tariff imposed by a small nation are
a. to reduce consumer welfare, increase producer welfare, and raise government revenue.
b. to increase consumer welfare, decrease producer welfare, and raise government revenue.
c. to increase consumer and producer welfare, and raise government revenue.
d. none of the above.

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator
01:30

Problem 8

A quota represents
a. a quantitative restriction on the amount of a good imported.
b. a combination of ad valorem and specific duties.
c. a compromise between taxpayers and consumers.
d. none of the above.

Megha Nayar
Megha Nayar
Numerade Educator
03:20

Problem 9

Nontariff barriers (NTB) include which of the following?
a. Export subsidies, specific tariffs, restrictions at national borders
b. Export subsidies, ad valorem tariffs, price supports
c. Price supports, restrictions at national borders, favorable credit terms for exporters
d. Price supports, favorable credit terms for exporters, specific and ad valorem tariffs

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
00:45

Problem 10

The three global institutions created after World War II to assist in rebuilding nations devastated by war and fostering economic recovery worldwide are a. GATT, World Bank, International Bank for Reconstruction and Development.
b. United Nations Conference on Trade, GATT, International Monetary Fund.
c. GATT, International Monetary Fund, International Bank for Reconstruction and Development.
d. International Monetary Fund, International Bank for Reconstruction and Development, United Nations Conference on Trade.

Hast Aggarwal
Hast Aggarwal
Numerade Educator
02:10

Problem 11

The World Trade Organization
a. is a multilateral agreement establishing the rules for governing international trade.
b. serves as an institutional forum for negotiating reductions to trade barriers and trade disputes.
c. has the main objective of encouraging economic growth and development by liberalizing world trade.
d. all of the above.

Jennifer Stoner
Jennifer Stoner
Numerade Educator
08:26

Problem 12

Identify and discuss the four general categories of arguments against trade. Discuss at least four reasons for undertaking policies designed to either restrict or promote agricultural exports.

JZ
Johanne Zhu
Numerade Educator
03:20

Problem 13

Preferential trading arrangements (PTAs) provide for the elimination of tariff and nontariff barriers to trade. T F

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
01:24

Problem 14

Trade creation occurs as some domestic production of a member nation is replaced by lower-cost imports from another member nation. T $F$

Ivan Kochetkov
Ivan Kochetkov
Numerade Educator
01:49

Problem 15

A trade-creating preferential trading agreement can increase the welfare gains of nonmember nations as well as member nations. $T \quad F$

Megha Nayar
Megha Nayar
Numerade Educator
02:10

Problem 16

Under Article I of GATT, now the WTO, preferential tariff rates are prohibited, but an exception is allowed by Article XXVI if which of the following conditions are met?
a. Trade barriers are eliminated on substantially all trade among members.
b. Trade barriers remaining against nonmembers are not more severe or restrictive than those previously in effect.
c. Interim measures leading to the formation of the agreement are employed for only a reasonable period of time.
d. All of the above.

Jennifer Stoner
Jennifer Stoner
Numerade Educator
01:13

Problem 17

The Southern Cone Common Market, MERCOSUR, was created to foster economic growth and mutual interests among the member nations of
a. Brazil, Guatemala, Paraguay, Argentina.
b. Paraguay, Uruguay, Argentina, Brazil.
c. Argentina, Guatemala, Panama, Brazil.
d. Brazil, Paraguay, Argentina, Panama.

Asma Venkitta
Asma Venkitta
Numerade Educator

Problem 18

Important dynamic gains from the formation of a preferential trading arrangement include a. economies of scale.
b. increased competition.
c. stimulus to investment.
d. more efficient use of economic resources.

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Problem 19

List the five reasons discussed for preferential trading arrangements.

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08:16

Problem 20

Discuss the five conditions under which preferential trading arrangements will most likely lead to trade creation and increased welfare of member nations.

Md.Daniyal Arshad
Md.Daniyal Arshad
Numerade Educator
06:46

Problem 21

Draw two graphs, one to illustrate small-nation trade diversion and one to illustrate small-nation trade creation. Label and explain each one.

Tommy Nguyen
Tommy Nguyen
Numerade Educator

Problem 22

The current round of multilateral trade negotiations that began in 2001 is referred to as
a. Qatar Charter.
b. WTO Round.
c. Doha Development Agenda.
d. none of the above.

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