Question

1.

A policy designed to deal directly with a problem that policymakers seek to remedy is referred to as:

Select one:

a. first-best trade policy.

b. dumping.

c. countervailing duty.

d. second-best trade policy.

2.

The large majority of regional trade agreements cover trade in services rather than trade in physical merchandise.

Select one:

True

False

3.

On Monday the spot rate of exchange between the Mexican peso and the U.S. dollar is 12.650 (peso/dollar). On the following Tuesday the rate is 13.250. We can say that the U.S. dollar appreciated relative to the Mexican peso.

Select one:

True

False

Answer 1