Vincennes University

AGBS 434

Chapter 5

TRUE/FALSE QUESTIONS

1)Amber box subsidies are not trade distorting

2. If the government supports the price of a commodity it is providing an export subsidy.

3. GMO labeling is a barrier to trade.

4. The principle of comparative advantage suggests that Iowa ought to be producing corn and soybeans

5. As the volume of trade expands, economies become more independent

6. A solution to the world food problem is for each country to be self-sufficient in food production.

7. Tariff rate quotas reduce the tariffs above some specified quantity.

8. Dumping is a sale below variable cost

9. With increased trade liberalization throughout the whole world, food would be more expensive but diets would improve.

10. Blue box subsidies require production controls

11. Sanitary and phytosanitary regulations are barriers to trade under WTO standards

12. The current round of trade negotiations is referred to as the Millennium Round