MCQs of Economics – Trade Policies For the Developing Nations

Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation:

A widely used indicator to differentiate developed countries from developing countries is:

Concerning the hypothesis that there has occurred a long run deterioration in the developing countries terms of trade empirical studies provide:

For the oil-importing countries, the increase in oil prices in 1970s and early 2000s contributed to all of the following except:

The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as:

Hong Kong and South Korea are examples of developing nations that have recently pursued _____ industrialization policies:

To be considered a a good candidate for an export cartel, a commodity should:

To be considered a good candidate for export cartel, a commodity should:

To help developing nations strengthen their international competitiveness many industrial nations have granted non-reciprocal tariff reductions to developing nations under the

All of the following are trade problems of developing countries except:

To stabilize the prices of primary products international commodity agreements have utilized all of the following except:

The ability of the Organization of Petroleum Exporting Countries (OPEC) to maximize profits is hampered by:

Among the institutions and policies that have been created to support developing countries are:

Which of the following strategies have developing countries not used to deal with the problem of unstable export markets?

Concerning tariff policy, the United States does not charge:

Because supply and demand conditions for primary products are very price inelastic their prices

Most of developing-country exports consist of

Import substitution is an example of:

Tariff levels in advanced countries tend to be ____ tariff levels in developing countries.

Export-led growth strategies tend to emphasize:

Developing countries that emphasize the production of raw materials or agricultural goods may realize a long-run deterioration in the international terms of trade because of:

_____ policies attempt to foster industrialization by establishing high barriers to imports of foreign goods to promote local production

The Generalized System of Preferences (GSP) program allows:

In the question Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that ____ has declined.

Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries ____ their export of tin

Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be ____ the size of the quantity fluctuations

Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations

An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is ____ and the ____ it is for the member producer countries to store/stock pile bauxite

Economic growth occurs because:

Developing countries that concentrate production in agricultural products or raw materials may face a long-run decline in their international terms of trade because of:

The OPEC oil cartel:

The pattern of economic growth describes the phenomenon of countries moving up in technological development by following the patterns of countries ahead of them in the development process

The People’s Republic of China:

Membership in the World Trade Organization for china:

Which of the following organizations primarily provides long-term loans to developing countries to help them develop their infrastructure such as schools hospitals and roads?

Poor developing countries typically impose ____ tariffs than rich advanced nations on imports

Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals ____ quantity equals ____ and profits total ____

Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is____ the price equals ____ and profits total _____

Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would:

Instead, assume that global economic expansion causes the quantity of tin demanded to increase by 4 million pounds at each price To maintain price of tin at the target price you would: