Economics MCQs

Page No. 394

When one country provides most favored nation status (normal trade relations) for another, it agrees to ?


acharge the nation’s products a lower tariff than any other nation’s


b charge that nation’s products a tariff rate no higher than that on any other nation


c charge that nation’s products a higher tariff than any other nation’s


d exports to that nation any products that it wants to purchase



The strongest political pressure for a trade policy that results in higher protectionism comes from?


adomestic workers lobbying for import restriction


bdomestic workers lobbying for export restrictions


c domestic consumers lobbying for export restrictions


ddomestic consumers lobbying for import restrictions



Concerning economic sanctions, export embargo induces greater losses in consumer surplus for the target country the?


alesser it initial dependence on foreign produce goods.


bmore elastic the target country demand schedule


cgreater then available output from alternative suppliers


dmore in elastic the target country supply scheduleB.



In 1980 the U.S imposed export quotas on grain sold to the Soviet Union in response to its armed invasion of Afghanistan if other nations do not increase grain exports to the soviets all the following would likely occur except?


aGrain prices would rise in the Soviet union


bConsumer surplus would decrease for the soviets


cGrains prices would rise in the united States


dExport revenues would decrease for U.S producers



What is deflation________________?


aDeficit Budge


b Reduction in taxation


cIncrease in public expenditure


dReverse of inflation


View Answer Reverse of inflation

Two countries can gain from foreign trade if ?


aCost ratios are different


bTariff rates are different


c Price ratios are different


dA and C of above


View Answer A and C of above

Which of the following is a valid currency______________?


aPromissory note


bCurrency note


cExchange rate


d Bank cheque


View Answer Currency note

From each according to his ability to each according to his need is the theoretical slogan of ?


aFeudal System


b Capitalist System


cFascist System


d Communist System


View Answer Communist System

Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?


aGold currency


bHard currency


cSilver currency


d Soft currency


View Answer Soft currency

Oil is measured in barrels. What is the abbreviation for barrels________________?


aBrl


bBel


cBbl


d Obl


View Answer Bbl

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