Economics MCQs

Page No. 370

Tariffs are used to protect infant industries these industries are those which ?


aemploy many young or untrained workers

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bare competing with well-established overseas firms

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care not yet large enough to achieve economies of scale

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d use a new technology

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If the Uk placed a limit on the amount of steel that could be imported into the UK in a particular period this would be an example of ?


aa quota

✓


bdumping

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ca tariff

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dan export subsidy

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View Answer a quota

One of the main advantages of trade economists suggest is ?


atechnological change

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bcompetitions with foreign suppliers

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cdevelopment of tourism

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dlower tariffs

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A country has a comparative advantage in the production of a product if the good’s _____ cost in different from the good’s _____ cost in another country ?


aresource; resource

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bforeign exchange money

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copportunity; opportunity

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dmoney; opportunity

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A significant portion of actual world trade patterns results from ?


aThe industrial policies of governments

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bdifferent sizes of the countries

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cdifferent factor endowment between countries

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dthe different tastes and preferences of people in different countries

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The most wave of globalization which began in the 1980s has emphasized the outsourcing of ?


a services and white-collar jobs

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bmanufacturing and blue-collar jobs

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cnatural resource extraction and mining jobs

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dagriculture and farming jobs

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A sudden shift from import tariffs to free trade may induce short-term unemployment in ?


aImport-competing industries

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bIndustries that are only exporters

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c Industries that sell domestically as well as export

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d industries that neither import nor export

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For the United States, commercial jetliners are ?


a Imported, but not exported

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bExported, but not imported

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cImported and exported

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dNeither exported nor imported

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View Answer Imported and exported

International trade in goods and services tends to ?


aIncrease all domestic costs and prices

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bKeep all domestic costs and prices at the same level

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cLessen the amount of competition facing home manufacturers

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dIncrease the amount of competition facing home manufacturers

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A feasible effect of international trade is that a (an) ?


aMonopoly in the home market becomes an oligopoly in the world market

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bOligopoly in the home market becomes a monopoly in the world market

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cPurely competitive firm in the home market becomes an oligopolist

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dpurely competitive firm in the home market becomes a monopolist

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