Test Bank For International Trade 1st Edition By John Mclaren

McLaren/International Economics

Test Bank

Chapter 5

1. 1. In the early nineteenth century the United States was

1. A. A self-sufficient economy
2. B. An exporter of cotton textiles
3. C. An exporter of agricultural goods
4. D. An exporter of slaves to Latin America

Answer: C

1. 2. By 1815 the US cotton textile industry had started blossoming because

1. A. The Tariff of 1789 provided protectionism
2. B. Of the disruptions of imports from Britain during the War of 1812
3. C. Of the cheap cotton from the South
4. D. Large inflow of immigrant labor

Answer: B

1. 3. By 1815 the cotton textile industry in the US had gained some significance because

1. A. the price of raw cotton had been falling
2. B. American farmers were producing more cotton by switching land which used to grow tobacco
3. C. of British FDI in the US
4. D. of the disruptions of imports from Britain during the War of 1812

Answer: D

1. 4. Between 1816 and 1828 New England businessmen lobbied the US Government to

1. A. Levy tariffs on textile imports from Britain
2. B. Restrict FDI from Britain
3. C. Levy an export tax on raw cotton exports to Britain
4. D. Levy an export tax on tobacco exports to Britain

Answer: A

1. 5. Between 1790 and 1836 tariff rates in the US peaked between

1. A. 1790 and 1803
2. B. 1803 and 1816
3. C. 1816 and 1827
4. D. 1828 and 1832

Answer: D

1. 6. In 1932 South Carolina threatened to secede from the US because of

1. A. The tariff imposed in 1828 on manufactured imports
2. B. The proposed export tax on agricultural exports
3. C. North’s anti-slavery
4. D. North’s support for free immigration into the US

Answer: A

1. 7. Which out of the following is not a specific factor

1. A. A Ph.D. in molecular biology
2. B. A retail outlet in a shopping mall
3. C. An off-shore oil rig
4. D. An oil tanker

Answer: B

1. 8. Which out of the following is not a specific factor

1. A. A Certified Public Accountant
2. B. Solar panels to gather heat
3. C. Agricultural land growing corn
4. D. A soccer stadium

Answer: C

1. 9. In a Pure Specific Factors model

1. A. Factors are immobile within sectors
2. B. Factors are immobile between sectors
3. C. Factors are immobile both within and between sectors
4. D. Factors are immobile within countries

Answer B

1. 10. In a Pure Specific Factors model

1. A. Factors are immobile within countries
2. B. Factors are immobile both within and between sectors
3. C. Factors are immobile within sectors
4. D. Factors are immobile between sectors

Answer: D