Economics MCQs

Page No. 390

The OPEC oil cartel ?


ahas shown that is easy to achieve cooperation among cartel members

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bwas successful in raising oil prices in the 1970s but was disbanded in the 1980s

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chas shown greater success in realizing profits during periods of global recession

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d has had a level of success in raising oil prices that other developing countries are unlikely to achieve with other primary commodities

✓



Economic growth occurs because ?


alabor forces increase

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bcapital stocks increase

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cnew inventions increase productivity

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d All of the above

✓


View Answer All of the above

Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?


arelatively greater than

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brelatively less than

✓


cthe same as

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dAny of the above

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View Answer relatively less than

Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?


apurchase; decrease

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bpurchase; increase

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csell; increase

✓


dsell; decrease

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View Answer sell; increase

The Generalized System of Preferences (GSP) program allows ?


adeveloping country export to advanced countries to receive preferential tariff treatment

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bdeveloping country imports from advanced countries to receive preferential tariff treatment

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cany developing country to ignore the most-favored nation clause

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dany advanced country to ignore the most favored-nation clause

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Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of ?


a relatively low import tariffs maintained by advanced countries

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b highly elastic demand for these products in advanced countries

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c declines in the supplies of these products on world markets

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d sluggish demand for these products in advanced countries

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Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?


a higher than

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bequal to

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c lower than

✓


dthere is no general pattern

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View Answer lower than

Most of developing-country exports consist of ?


a primary products such as tin and bauxite

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b intermediate products

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clabor-intensive agricultural products

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dlabor-intensive manufacturing products

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Concerning tariff policy, the United States does not charge?


a lower tariff rates on goods from nations with normal trade relation status

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blower tariff rates on goods from nations with most favored nation status

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clow or zero tariffs on goods from certain developing countries

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didentical tariff rates in products from all countries of the world

✓



Among the institutions and policies that have been created to support developing countries are?


athe world Bank

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b the international Monetary Fund

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cThe Generalized System of Preferences

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dAll of the above

✓


View Answer All of the above

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