Economics MCQs

Page No. 304

A _______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import ?


aimport quota


b export quota


cselective quota


d global quota


View Answer selective quota

According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?


aaverage total cost


baverage variable cost


c average fixed cost


dmarginal cost


View Answer average total cost

The form of dumping that represents the greatest potential net welfare loss the for importing national is ?


apredatory dumping


bsporadic dumping


cpersistent dumping


d yearend dumping


View Answer predatory dumping

A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market ?


adomestic subsidy


bvoluntary restraint agreement


cdomestic content requirement


dtariff-rate quota



A production subsidy that is granted to a producer of an import-competing good ?


adoes not require government taxes to finance it


byields the same deadweight welfare loss as an import tariff or import quota


c has only a consumption effect deadweight loss


dhas only a protective effect deadweight loss



international dumping may involve ?


aselling goods to foreigners at a price below that charged domestic consumers


bselling goods to foreigners at a price below the cost of production


cantidumping duties being levied on the imported, dumped goods


d All of the above


View Answer All of the above

Governments around the world tend to auction quota licenses ?


a never


b seldom


coften


d always


View Answer seldom

________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?


aquota license


bquota rents


cquota prices


dNone of the above


View Answer quota rents

Similar to import tariffs import quotas tend to result in ?


ahigher prices and reduced imports


bincreased government revenue


cincreased consumer surplus


ddecrease producer surplus



Quotas are government-imposed limits on the _________ of goods trade between countries?


aprices


b quantity


crevenue


dcosts


View Answer quantity

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