Ch8 Foreign Econ Bureau & NEC Test Questions & Answers

Test Bank

Chapter 8: The Foreign Economic Bureaucracy and the National Economic Council

Multiple Choice

1. Which of the following types of policy played an important role in the movement for independence from Britain?

a. trade

b. fiscal

c. monetary

d. tax

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Application

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Medium

2. The Bretton Woods international economic system was premised on ______.

a. the principles of free trade

b. the belief that tariffs were necessary

c. competition, rather than cooperation

d. closed door policies

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Easy

3. This pattern in US foreign economic policy was deeply affected by the collapse of the international economy accompanying the ______.

a. onset of World War I

b. Great Depression

c. Great Recession

d. onset of the Vietnam War

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Medium

4. Which of the following was indicative of the high priority of US foreign economic policy under the Bush and Clinton administrations?

a. American Jobs Act

b. North American Free Trade Agreement (NAFTA)

c. US-Mexico-Canada Agreement (USMCA)

d. Emergency Economic Stabilization Act

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Application

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Medium

5. According to the authors, a key part of President Trump’s political base ______.

a. favored free trade

b. favored market-based capitalism

c. rejected free trade

d. rejected nationalism

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Easy

6. Many of President Trump’s voters saw themselves as ______.

a. educated

b. affluent

c. poorly paid

d. overemployed

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Easy

7. The United States, under President Trump, withdrew from the Trans Pacific Partnership, which had been negotiated between the United States and 11 Pacific rim partners to counter the growing might of ______.

a. China

b. North Korea

c. Ukraine

d. Russia

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Knowledge

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Easy

8. In an attempt to reduce US trade deficits, the United States, under President Trump, implemented a series of tariffs against various partners, most notably ______.

a. Canada

b. Mexico

c. China

d. Great Britain

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Knowledge

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Easy

9. Which of the following agencies was identified as the most important in areas of international economics?

a. Commerce

b. Agriculture

c. State

d. Treasury

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: Treasury Department

Difficulty Level: Medium

10. Which of the following individuals represents the US government in key international economic organizations such as the International Monetary Fund (IMF) and the World Bank?

a. secretary of defense

b. secretary of commerce

c. secretary of treasury

d. secretary of agriculture

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: Treasury Department

Difficulty Level: Medium

11. Relative to the Treasury Department, the influence of the Department of State on US international economic policy has ______.

a. significantly increased

b. declined

c. slightly increased

d. remained the same

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Analysis

Answer Location: Department of State

Difficulty Level: Medium

12. Which of the following agencies is principally responsible for administering economic assistance and supervising economic development policy abroad?

a. Bureau for Economic and Business Affairs

b. US Agency for International Development

c. International Trade Administration

d. Inter-American Development Bank

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: Department of State

Difficulty Level: Medium

13. Which of the following agencies has the primary responsibility for the importation of foreign products, international economic policy, and trade promotion, especially non-agricultural?

a. Bureau for Economic and Business Affairs

b. US Agency for International Development

c. International Trade Administration

d. Inter-American Development Bank

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: Department of Commerce

Difficulty Level: Medium

14. The ______ directs the government’s export control policy.

a. Bureau of Industry and Security

b. Foreign Commercial Service

c. Bureau for Economic and Business Affairs

d. US Tourism and Travel Office

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Knowledge

Answer Location: Department of Commerce

Difficulty Level: Easy

15. Which of the following is considered to be the central emphasis of the Department of Labor?

a. enforcing US export control laws

b. promoting a fair global playing field for US workers

c. preparing energy and plans in case of national emergency

d. providing grants and credits to foreign governments

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: Department of Labor

Difficulty Level: Medium

16. Which of the following is considered to be an independent agency that determines and executes the general monetary and credit and serves as the government’s central bank?

a. Department of Commerce

b. Treasury Department

c. Export-Import Bank

d. The Federal Reserve Board

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: The Fed

Difficulty Level: Medium

17. Which of the following is an example of an EOP agency?

a. the FED

b. the National Economic Council

c. US Trade and Development Agency

d. Export-Import Bank

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: EOP Agencies

Difficulty Level: Medium

18. Members of the Council of Economic Advisors (CEA) are usually ______.

a. academics

b. presidential appointees

c. elected officials

d. businessmen or women

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Knowledge

Answer Location: EOP Agencies

Difficulty Level: Easy

19. Which of the following agencies was designed to assist in the creation of jobs for Americans by helping US companies export and pursue overseas business opportunities?

a. the Overseas Private Investment Corporation

b. US International Trade Commission

c. the Export-Import Bank

d. US Trade and Development Agency

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Knowledge

Answer Location: US Trade and Development Agency

Difficulty Level: Easy

20. The ______ insures American companies against the political risks of foreign investment, such as expropriation and damage from war, revolution, insurrection, or civil strife.

a. Overseas Private Investment Corporation

b. US International Trade Commission

c. Export-Import Bank

d. US Trade and Development Agency

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Comprehension

Answer Location: The Overseas Private Investment Corporation

Difficulty Level: Medium

21. The Export-Import Bank was established in 1934 to promote trade only with ______.

a. Soviet Union

b. Russia

c. Japan

d. China

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Comprehension

Answer Location: The Export-Import Bank

Difficulty Level: Easy

22. The ______ provides analysis and maintenance tariffs and the US tariff schedule.

a. Overseas Private Investment Corporation

b. US International Trade Commission

c. Export-Import Bank

d. US Trade and Development Agency

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Comprehension

Answer Location: The US International Trade Commission

Difficulty Level: Easy

23. The US International Trade Commission is made of up six commissioners who are appointed for ______ terms.

a. two year

b. four year

c. six year

d. nine year

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Knowledge

Answer Location: The US International Trade Commission

Difficulty Level: Easy

24. Which of the following cities is considered to be the financial center of the United States?

a. Los Angeles

b. Washington, DC

c. Chicago

d. New York

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: The Fed

Difficulty Level: Easy

25. The Fed is an example of a/an ______.

a. commission

b. government corporation

c. independent agency

d. cabinet department

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Application

Answer Location: The Fed

Difficulty Level: Medium

26. During the Cold War, international economics was considered ______.

a. low priority

b. medium priority

c. high priority

d. not a priority

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: Presidential Attention and Knowledge

Difficulty Level: Easy

27. Historically, the ______ was the lead agency responsible for coordinating US foreign economic policy.

a. Department of State

b. Department of Defense

c. Department of the Treasury

d. Department of Commerce

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Application

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Medium

28. After World War II which of the following departments grew in prominence, becoming “a first among equals”?

a. Department of Defense

b. Department of Commerce

c. Department of the Treasury

d. Department of Energy

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Application

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Medium

29. As the foreign economic bureaucracy grew, power ______.

a. centralized

b. decentralized

c. remained stable

d. merged

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Easy

30. An early effort at the coordination of bureaucratic agencies involved which of the following processes?

a. security

b. committee

c. budgetary

d. trade

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Application

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Easy

31. What effect did the decentralization of power have on the president’s actions concerning foreign policy?

a. it made it easy for the president to manage economic aspects of foreign policy

b. it made it difficult for the president to manage economic aspects of foreign policy

c. it made it impossible for the president to manage economic aspects of foreign policy

d. it did not have any effect of the president’s actions concerning foreign policy

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Analysis

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Hard

32. Interagency committees that were created to promote interaction and coordination of foreign economic policy are most often chaired by the ______.

a. Department of Commerce

b. Department of the Treasury

c. Department of State

d. Department of Defense

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Knowledge

Answer Location: Foreign Economic Policy Coordination During the Cold War

Difficulty Level: Easy

33. The National Economic Council (NEC) was designed to function as a/an ______.

a. honest broker

b. process manager

c. personal advisory council

d. mix of honest broker, process manager, and personal advisory council

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: The National Economic Council and the High Politics of International Economics

Difficulty Level: Easy

34. Which of the following stages is the National Economic Council (NEC) responsible for?

a. analysis

b. planning

c. implementation

d. evaluation

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Application

Answer Location: The National Economic Council and the High Politics of International Economics

Difficulty Level: Medium

35. The National Economic Council (NEC) was created by ______.

a. President Clinton

b. President Nixon

c. President Ford

d. President Trump

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Knowledge

Answer Location: Origins

Difficulty Level: Easy

36. Which of the following types of economic policy is coordinated by the National Economic Council (NEC)?

a. only domestic

b. only intermestic

c. only international

d. domestic, intermestic, and international

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Application

Answer Location: The NEC in Operation

Difficulty Level: Medium

37. The core group of the National Economic Council is the ______.

a. Deputies committee

b. Principals Committee

c. interagency working groups

d. the president and the director

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: The NEC in Operation

Difficulty Level: Easy

38. Which of the following types of groups are committed on an ad hoc basis?

a. deputies committees

b. principals committees

c. working groups

d. core groups

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Application

Answer Location: The NEC in Operation

Difficulty Level: Medium

39. The creation of the National Economic Council (NEC) had immediate effects on the ______.

a. community development

b. infrastructure and transportation

c. tax policy

d. budget

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: The NEC in Operation

Difficulty Level: Medium

40. Which of the following was established during the Trump administration?

a. National Economic Council

b. National Security Council

c. National Trade Council

d. Economic Security Council

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Application

Answer Location: The Trump Administration and (Lack of) Coordination in Foreign Economic Policymaking

Difficulty Level: Easy

True/False

1. In the 1970s, foreign economic policy generally took a back seat to the so-called high politics of national security and the Cold War.

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Medium

2. The Fed is officially under the control of the president.

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Knowledge

Answer Location: The Fed

Difficulty Level: Easy

3. Fed policies influence the activities of other major banking systems as well, such as in Europe and Japan.

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Comprehension

Answer Location: The Fed

Difficulty Level: Easy

4. Domestic and international economics are classic intermestic issues.

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: Foreign Economics and The Uncertain Future of Presidential Power

Difficulty Level: Easy

5. No single department or cabinet member can exercise effective oversight of overall foreign economic policy.

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: Presidential Attention and Knowledge

Difficulty Level: Medium

Short Answer

1. What has American foreign economic policy focused on since its inception?

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Comprehension

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Hard

2. What factors led to the unsustainability of the Bretton Woods system?

Learning Objective: 8-1: Know the context of US foreign economic policy.

Cognitive Domain: Analysis

Answer Location: US Foreign Economic Policy in Context

Difficulty Level: Hard

3. Why have the jurisdictional lines between governmental institutions with primary responsibility for domestic economic policies have become blurred?

Learning Objective: 8-2: Identify the major agencies and organizations of the foreign economic bureaucracy.

Cognitive Domain: Analysis

Answer Location: Relevant Governmental Agencies

Difficulty Level: Medium

4. What legacy did the low priority of international economics during the Cold War legacy?

Learning Objective: 8-3: Understand the background of modern approaches to managing and coordinating foreign economic policymaking.

Cognitive Domain: Analysis

Answer Location: Presidential Attention and Knowledge

Difficulty Level: Medium

5. What are the functions of the National Economic Council (NEC)?

Learning Objective: 8-4: Describe the nature, role, and challenges of the National Economic Council in foreign economic policymaking.

Cognitive Domain: Comprehension

Answer Location: The National Economic Council and the High Politics of International Economics

Difficulty Level: Hard