Sjtu Sce Ec341 International Economics Winter 2022 Mid Term Exam Multiple Choice15 Question)

This study source was downloaded by 100000865965430 from CourseHero.com on 07-12-2023 15:16:32 GMT -05:00https://www.coursehero.com/file/205415414/midpdf/ SJTU SCE EC341 International Economics Winter 2022 Mid Term Exam Student Name: 1. Multiple Choice15question4points each 1. When a member of custom union, replaces one of its high cost production processes with a production process that uses lower cost imports from a member nation, this leads to: A) trade creation B) trade diversion C) the generation of economies of scale D) dynamic trade effect Answer: 2. A tax of 5% per unit of imported wine would be an example of a(n): A) ad valorem tariff B) specific tariff C) export tariff D) compound tariff Answer: 3. The ______________ is the tariff that maximizes the positive difference between gains associated with improvement in terms of trade and the losses resulting from reduction in the volume of trade. Aoptimum tariff Bprohibitive tariff C) nominal tariff D) absolute tariff Answer: 4. Areas set up to attract foreign investments by allowing the importation of raw and intermediate materials without paying tariffs are called: A) Customs unions B) Duty-free zones C) free trade area D) Economic unions Answer: 5. The marginal rate of transformation (MRT) of X for Y refers to:This