Economics MCQs

Page No. 374

A reduced share of the world export market for the United States would be attributed to?


aDecreased productivity in U.S manufacturing

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bHigh incomes of American households

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cRelatively low interest rates in the United States

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dHigh levels of investment by American corporations

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Technological improvements are similar to international trade since they both ?


aProvide benefits for all producers and consumers

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b Increase the nation’s aggregate income

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cReduce unemployment for all domestic workers

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d Ensure that industries can operate at less than full capacity

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The real income of domestic producers and consumers can be increased by ?


aTechnological progress, but not international trade

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bInternational trade but not technological progress

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cTechnological Progress and international trade

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d Neither technological progress nor international trade

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For the United States automobiles are ?


aImported, but not exported

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bExported, but not imported

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cExported and imported

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dNeither imported not exported

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View Answer Exported and imported

Recent pressures for protectionism in the United States have been motivated by all of the following except ?


aU.S firms shipping component production overseas

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bHigh profit levels for American corporations

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cSluggish rates of productivity growth in the United States

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dHigh unemployment rates among America workers

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Major trading partners of the United States including all of the following countries except ?


aCanada

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bMexico

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cChina

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dNorth Korea

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View Answer North Korea

Increased foreign competition tend to ?


aIntensify inflationary pressure at home

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bInduce falling output per worker-hour for domestic workers

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cPlace constraints on the wages of domestic workers

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d Increase profits of domestic import competing industries

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Which American industry has least been affected by import competition in recent years ?


aAutomobiles

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bSteel

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c Radios and TVs

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dComputer software

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View Answer Computer software

International trade is based on the idea that ?


aExports should exceed imports

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bimports should exceed exports

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cResources are more mobile internationally than are goods

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dResources are less mobile internationally than are goods

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International trade forces domestic firms to become more competitive in terms of ?


aThe introduction of new products

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bProduct design and quality

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cProduct price

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dAll of the above

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View Answer All of the above

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