Quiz Answer Bank (Ch 1-4) - QUIZ ANSWER BANK Chapter 2 1 The Marshall Plan was aimed at assisting the rebuilding of Europe 2 Which of the following

Quiz Answer Bank (Ch 1-4) - QUIZ ANSWER BANK Chapter 2 1...

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QUIZ ANSWER BANK Chapter 2 1. The Marshall Plan was aimed at: assisting the rebuilding of Europe. 2. Which of the following legislations raised average U.S. tariffs on more than 20,000 imported goods to levels in excess of 60 percent? The Smoot-Hawley Act 3. Which of the following were the two major challenges faced by U.S. multinational corporations at the close of the 1960s? Resistance to direct investment and increasing competition in export markets 4. The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of the following is one of the countries included in this list? India 5. Balance of payments is best defined as: the system of accounts that records a nation’s international 6. Which of the following is a defining characteristic of a balance-of-payments record? It is maintained on 7. Which of the following is most likely to be recorded on the minus side of the U.S. balance of payments? Cost of economic aid. 8. Which of the following is most likely to be recorded on the plus side of the U.S. balance of payments? 9. Which of the following accounts is an integral part of the balance-of-payments statement? Capital 10. Which of the following is most likely to be included in the current account of the balance-of- payments statement? Merchandise exports and imports.
11. Which of the following is most likely to be included in the capital account of the balance-of-paymentsstatement? 12. Which of the following is most likely to be included in the reserves account of the balance-of-payments statement? Increases or decreases in liabilities to foreign central banks. 13. Tariffs, quotas, and nontariff barriers designed to shelter a country’s markets from intrusion by foreign companies are indicative of: protectionism 14. Which of the following arguments supporting the need for protectionism is considered to be valid by economists? Strengthening the national defense system domestically. 15. Which of the following statements is true about tariffs? Tariffs increase special interests’ privileges.

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