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


b countervailing duty


c domestic content


dsafeguards


View Answer safeguards

Antidumping duties applied to imported goods ?


aare abolished by the World Trade Organization


bresult in decreases in consumer surplus for domestic households


care imposed by industrial countries but not developing countries


dresult in lower-priced goods for domestic consumers



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


a it reduces the sovereignty of member countries


bfavors free trade over the quality of the environment


cit has no way to solve trade disputes among member countries


d it is a puppet of multinational corporations



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


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


b10 radios


c 15 radios


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


bprovide benefits to some particular industry


cprovide benefits to the entire nation


dnot yield welfare losses for the nation



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


athe WTO


bthe GATT


cthe IMF


d the World Bank


View Answer the GATT

During the post-world War II era?


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


b NTBs and tariffs have decreased in relative importance


cNTBs have increased and tariffs have decreased in relative importance


dNTBs have decreased and tariffs have increased in relative importance



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


a U.S grains consumers and producers of bread


bU.S farmers and grains companies


cGrain Producers in foreign countries


dGrain consumers in foreign countries



Economic sanctions?


aEconomic sanctions?


b affect international trade but not international financial flows


cinvolve restrictions on imports, but not exports


dinvolve restrictions in imports exports and or financial flows



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