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

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b export quota

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cselective quota

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d global quota

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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

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baverage variable cost

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c average fixed cost

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dmarginal cost

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View Answer average total cost

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


apredatory dumping

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bsporadic dumping

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cpersistent dumping

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d yearend dumping

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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

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bvoluntary restraint agreement

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cdomestic content requirement

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dtariff-rate quota

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


adoes not require government taxes to finance it

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

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c has only a consumption effect deadweight loss

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dhas only a protective effect deadweight loss

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international dumping may involve ?


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

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

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cantidumping duties being levied on the imported, dumped goods

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d All of the above

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View Answer All of the above

Governments around the world tend to auction quota licenses ?


a never

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b seldom

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coften

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d always

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View Answer seldom

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


aquota license

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bquota rents

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cquota prices

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dNone of the above

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View Answer quota rents

Similar to import tariffs import quotas tend to result in ?


ahigher prices and reduced imports

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bincreased government revenue

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cincreased consumer surplus

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ddecrease producer surplus

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


aprices

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b quantity

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crevenue

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dcosts

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View Answer quantity

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