Economics MCQs

Page No. 392

________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?


ageneralized system of preference

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b countervailing duty

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c domestic content

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dsafeguards

✓


View Answer safeguards

Antidumping duties applied to imported goods ?


aare abolished by the World Trade Organization

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bresult in decreases in consumer surplus for domestic households

✓


care imposed by industrial countries but not developing countries

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dresult in lower-priced goods for domestic consumers

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The World Trade Organization is sometimes criticized for all of the following reasons except?


a it reduces the sovereignty of member countries

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bfavors free trade over the quality of the environment

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cit has no way to solve trade disputes among member countries

✓


d it is a puppet of multinational corporations

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Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?decreases, decreases


adecreases, decreases

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bdecreases, increases

✓


cincreases, decreases.

✖


dincreases, increases

✖


View Answer decreases, increases

Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?


a 5 radios

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b10 radios

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c 15 radios

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dzero radios

✓


View Answer zero radios

Those who argue in favor of import protection generally give the impression that such restricted trade will?


adecrease the level of national security

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bprovide benefits to some particular industry

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cprovide benefits to the entire nation

✓


dnot yield welfare losses for the nation

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The institutional framework developed in 1947 to promote trade liberalization is known sa?


athe WTO

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bthe GATT

✓


cthe IMF

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d the World Bank

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View Answer the GATT

During the post-world War II era?


a Nontariff barriers (NTBs) and tariffs have increased in relative importance

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b NTBs and tariffs have decreased in relative importance

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cNTBs have increased and tariffs have decreased in relative importance

✓


dNTBs have decreased and tariffs have increased in relative importance

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Referring to the above, the embargo was mainly resisted by ?


a U.S grains consumers and producers of bread

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bU.S farmers and grains companies

✓


cGrain Producers in foreign countries

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dGrain consumers in foreign countries

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Economic sanctions?


aEconomic sanctions?

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b affect international trade but not international financial flows

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cinvolve restrictions on imports, but not exports

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dinvolve restrictions in imports exports and or financial flows

✓



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