Economics MCQs

Page No. 306

Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ?


aan import tariffs

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ba tariff rate quota

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c a selective quota

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d a global quota

✓


View Answer a global quota

Under a tariff- rate quota ?


aThe within-quota tariff rate exceeds the over-quota tariff rate

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bthe over-quota tariff rate exceeds the with-quota tariff rate

✓


c The within-quota tariff rate equals the over-quota tariff rate

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dThe within-quota tariff rate plus over-quota tariff rate equal 100 percent

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The firm would maximize profit by selling computers in the United States at a price of __________ and _________ computers in Japan at a price of __________?


a200, $2,000, 100 $1,000

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b300, $1,800, 800 $800

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c300, $1,800, 400 $800

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d500, $1,400, 400 $800

✓


View Answer 500, $1,400, 400 $800

Buy national policies ?


aresult in government purchase policies favoring domestic over foreign producers

✓


bresult in government purchase policies favoring foreign over domestic producers

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cattempt to restrict the number of tourists leaving a nation

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dare intended to publicize the advantage of the most efficient domestic companies

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What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 – 1984 ?


a export quotas imposed by the Japanese government

✓


bexport tariffs imposed by the Japanese’s government

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c import quotas imposed by the U.S government

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ddomestic subsidies granted by the U.S government

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________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?


asporadic dumping

✓


b predatory dumping

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cpersistent dumping

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dforeign dumping

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View Answer sporadic dumping

The form of international price discriminations (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as?


a Predatory dumping

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bsporadic dumping

✓


c persistent dumping

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d year end dumping

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View Answer sporadic dumping

A tariff-rate quota is essentially a ?


a two tier tariff applied to a country’s imports

✓


b three-tier tariff applied to a country’s imports

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ctwo tier quota applied to a county’s exports

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dthree tier quota applied to a country’s ex

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Nontariff trade barriers could include all of the following except ?


a domestic content laws

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bgovernment procurement policies

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chealth, safety, and environmental standards

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d antidumping/countervailing duties applied to imports

✓



A(n) ________ is n example of a quota where foreigners hold quota licenses ?


aexport quota

✓


bembargo

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cauction quota

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dtariff quota

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View Answer export quota

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