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

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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

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

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


adomestic workers lobbying for import restriction

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bdomestic workers lobbying for export restrictions

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c domestic consumers lobbying for export restrictions

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ddomestic consumers lobbying for import restrictions

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


alesser it initial dependence on foreign produce goods.

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bmore elastic the target country demand schedule

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cgreater then available output from alternative suppliers

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dmore in elastic the target country supply scheduleB.

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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

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bConsumer surplus would decrease for the soviets

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cGrains prices would rise in the united States

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dExport revenues would decrease for U.S producers

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What is deflation________________?


aDeficit Budge

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b Reduction in taxation

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cIncrease in public expenditure

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dReverse of inflation

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View Answer Reverse of inflation

Two countries can gain from foreign trade if ?


aCost ratios are different

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bTariff rates are different

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c Price ratios are different

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dA and C of above

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View Answer A and C of above

Which of the following is a valid currency______________?


aPromissory note

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bCurrency note

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cExchange rate

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d Bank cheque

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View Answer Currency note

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


aFeudal System

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b Capitalist System

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cFascist System

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d Communist System

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View Answer Communist System

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


aGold currency

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bHard currency

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cSilver currency

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d Soft currency

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View Answer Soft currency

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


aBrl

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bBel

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cBbl

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d Obl

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View Answer Bbl

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