Economics MCQs

Page No. 307

The home country government can confiscate the revenue effect of an import quota if ?


a quota licenses are given to foreign exporting companies


bquota licenses are auctioned to the highest bidding importing company


c if quota licenses are given to domestic consumers of the good


dBoth A and C



The welfare effects of a quota depend to a considerable extent upon ?


awho has the quota license


b the size of the quota


c elasticities of domestic demand and supply


dAll of the above


View Answer All of the above

___________ are quotas that lead to a complete abolishment of trade?


aembargoes


b voluntary export restraints


cnontariff barriers


dorderly marketing agreements


View Answer embargoes

In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?


a Orderly marketing


btrigger pricing


cdomestic content pricing


ddumping


View Answer dumping

Throughout the world, governments tend to auction quota licenses to their highest bidder ?


a always


b often


c seldom


dnever


View Answer seldom

To maintain that South koreans are dumping their DVDs in the United States is to maintain that ?


aKoreans are selling DVDs in the U.S below their production cost


b Koreans are selling DVDs is the U.s above their productions cost


cThe cost of manufacturing DVDs in Korea is lower in Korea than in the U.S since wages are lower in Korea


d The cost of manufacturing DVDs in Korea is higher in Korea than in the U.S since wages are higher in Korea



Import quotas tend to result in all of the following except ?Import quotas tend to result in all of the following except ?


adomestic producers of the imported good being harmed


b domestic consumers of the imported good being harmed


c Prices increasing in the importing country


d Prices falling in the exporting country



If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?


a foreign corporations


b foreign workers


cdomestic corporations


dThe domestic government



To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?


a20 calculator, $50


b20 calculator, $100


c25 calculator, $50


d 25 calculator, $100


View Answer 20 calculator, $50

In the absence of trade, Canada’s equilibrium price and quantity equal ?


a$65 and 40 calculators


b$55 and 20 calculators


c$45 and 25 calculators


d $30 and 40 calculators



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