MCQs of Economics – Non-Tariff Trade Barriers

If a tariff and import quota lead to equivalent increases in the domestic price of steel, then:

Under a tariff- rate quota:

In a tariff and import quota lead to equivalent increase in the domestic price of steel, then:

Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as:

Antidumping duties are used to:

By practicing price discrimination the firm would realize profits totaling:

In the absence of traded, Norway’s equilibrium price and quantity equal

With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts?
Try plotting the information of this table on a sheet of graph paper.

To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will _____ and its producer surplus will ____ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper

From the perspective of the American public as a whole, export subsidies levied by overseas governments on goods sold to the United States:

During periods of growing domestic demand, an import quota:

The reason for dumping is that the demand curve for ABC Co’s computers is _____ because _____ are available from other nations.

In the absence of trade, Canada’s equilibrium price and quantity equal:

With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted?

To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _____

Export subsidies levied by foreign governments on products in which the Pakistan the comparative disadvantage:

If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to:

A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a (an):

Import quotas tend to result in all of the following except:

A tariff-rate quota

To maintain that South koreans are dumping their DVDs in the United States is to maintain that:

If the home country government grants a subsidy on a domestically produced good domestic producers tend to:

Throughout the world, governments tend to auction quota licenses to their highest bidder

For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that:

In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as:

Quotas are government imposed limits on the ____ of goods trade between countries.

_____ are quotas that lead to a complete abolishment of trade

Similar to import tariffs import quotas tend to result in

The welfare effects of a quota depend to a considerable extent upon:

_____ are profits that accrue to whomever has the right to import the good that is restricted by the quota

The home country government can confiscate the revenue effect of an import quota if:

Governments around the world tend to auction quota licenses:

A(n) _____ is n example of a quota where foreigners hold quota licences

international dumping may involve:

Nontariff trade barriers could include all of the following except

A production subsidy that is granted to a producer of an import-competing good

A tariff-rate quota is essentially a

A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market

The form of international price discriminations (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as:

The form of dumping that represents the greatest potential net welfare loss the for importing national is

_____ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy.

According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than

What type of trade barrier was used to protect U.S auto firms from foreign competition during 1981 – 1984?

A ______ allows a specified number of goods to be imported each year, and it not specifies from where the product is shipped and who is permitted to import

Buy national policies:

Which company in the United States would likely be most concerned about Brazil’s dumping of steel in the U.S market?

The firm would maximize profit by selling computers in the United States at a price of _____ and _____ computers in Japan at a price of _____