Economics MCQs

Page No. 391

To stabilize the prices of primary products international commodity agreements have utilized all of the following except ?


atariff-rate quotas applied to imported goods


bproduction and export controls


cbuffer stocks


d multilateral contracts



To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the ?


a international commodity agreements program


bmultilateral contract program


c generalized system of preferences program


dexport-led growth program



To be considered a a good candidate for an export cartel, a commodity should ?


abe a manufactured goods


b be a primary product


chave high price elasticity of supply


d have a low price elasticity of demand



The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as ?


anormal trade relation status


bmost favored nation status


c offshore assembly provisions


d Generalized System of Preferences



Concerning the hypothesis that there has occurred a long run deterioration in the developing countries terms of trade empirical studies provide ?


amixed evidence that does not substantiate the deterioration hypothesis


boverwhelming support for the deterioration hypothesis


coverwhelming opposition to the deterioration hypothesis


dNone of the above



Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?


a export promotion


bmport promotion


cinternational commodity agreements


d multilateral contracts


View Answer export promotion

The theory of suggests that government can assist domestic companies in capturing economic profits from foreign competitors ?


a international dumping


bcountervailing duties


c Strategic trade policy


dexport promotion policy



The effect of the most favored nation (normal trade relations) clause is to ?


aeliminate all tariffs between countries


b increase all tariffs between countries


cmaintain a nondiscriminatory structure of tariffs


dmaintain a discriminatory structure of tariffs



The result of antidumping tariffs is to ?


a increase consumer surplus in the importing country


b decrease producer surplus in the importing country


cimpose a price floor on foreign prices in the importing country


dimpose a price ceiling on foreign price in the importing country



Concerning dumping, which of the following is true ?


a predatory dumping represents the most common form of dumping by U.S firms


bU.S firms can obtain protection from foreign dumping, even though this protection tends to harm overall U.S welfare


c dumping can never be a profit-maximizing strategy for U.S firms to pursue


dU.S firms rarely if ever, engage in distress dumping or persistent dumping



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