1. What is a floating exchange rate system?

a. A monetary system in which the exchange rates of major currencies retain nearly the same value with respect to the U.S. dollar, but are allowed to fluctuate during crises.

b. A monetary system in which exchange rates are allowed to change according to their market price.

c. A monetary system in which the exchange rates of currencies are set at a permanent price in terms of gold.

d. A monetary system in which the exchange rates of major currencies retain nearly the same value with respect to gold, but are periodically adjusted currency crises.

2. Considering the roles of interests, interaction, and institutions in the politics of trade policy, when are we most likely to observe protectionism?

a. When factors of production are sector-specific and political institutions magnify the influence of small groups.

b. Under proportional representation electoral systems with geographically large and diverse districts.

c. When consumers are able to lobby politicians effectively.

d. In non-democracies when factors of production are mobile across sectors of the economy.

3. What was the original role of the IMF under the Bretton Woods International Monetary System?

a. To lend to countries experiencing temporary balance of payments disequilibria so that they could maintain their fixed exchange rates.

b. To finance reconstruction after World War II.

c. To regulate financial derivatives and manage levels of systemic risk.

d. To promote free trade.

4. What is export Oriented industrialization (EOI)?

a. government policy of obtaining foreign technology as a means of encouraging industrialization

b. a policy of encouraging trade as a means of industrializing

c. a policy of encouraging the use of alternative resources necessary to fuel industrialization

d. a policy of promoting industrialization through tariffs, subsidies and other incentives in order to replace foreign goods with domestically produced goods

5. What is import substitution industrialization (ISI)?

a. a policy of promoting industrialization through tariffs, subsidies and other incentives in order to replace foreign goods with domestically produced goods

b. a policy of encouraging trade as a means of industrializing

c. a policy of encouraging the use of alternative resources necessary to fuel industrialization

d. government policy of obtaining foreign technology as a means of encouraging industrialization