1.

A policy designed to deal directly with a problem thatpolicymakers 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 inservices rather than trade in physical merchandise.

Select one:

True

False

3.

On Monday the spot rate of exchange between the Mexican peso andthe U.S. dollar is 12.650 (peso/dollar). On the following Tuesdaythe rate is 13.250. We can say that the U.S. dollar appreciatedrelative to the Mexican peso.

Select one:

True

False