Economics MCQs

Page No. 370

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


aemploy many young or untrained workers


bare competing with well-established overseas firms


care not yet large enough to achieve economies of scale


d use a new technology



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


ca tariff


dan export subsidy


View Answer a quota

One of the main advantages of trade economists suggest is ?


atechnological change


bcompetitions with foreign suppliers


cdevelopment of tourism


dlower tariffs



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


bforeign exchange money


copportunity; opportunity


dmoney; opportunity



A significant portion of actual world trade patterns results from ?


aThe industrial policies of governments


bdifferent sizes of the countries


cdifferent factor endowment between countries


dthe different tastes and preferences of people in different countries



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


a services and white-collar jobs


bmanufacturing and blue-collar jobs


cnatural resource extraction and mining jobs


dagriculture and farming jobs



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


aImport-competing industries


bIndustries that are only exporters


c Industries that sell domestically as well as export


d industries that neither import nor export



For the United States, commercial jetliners are ?


a Imported, but not exported


bExported, but not imported


cImported and exported


dNeither exported nor imported


View Answer Imported and exported

International trade in goods and services tends to ?


aIncrease all domestic costs and prices


bKeep all domestic costs and prices at the same level


cLessen the amount of competition facing home manufacturers


dIncrease the amount of competition facing home manufacturers



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


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


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


cPurely competitive firm in the home market becomes an oligopolist


dpurely competitive firm in the home market becomes a monopolist



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