In free trade A will import ?

Related Mcqs:

1. In the 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?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

2. When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?

   A. trade diversion
   B. trade channeling
   C. trade creation and trade diversion
   D. trade creation

3. A sudden shift from import tariffs to free trade may induce short-term unemployment in ?

   A. Import-competing industries
   B. Industries that are only exporters
   C. Industries that sell domestically as well as export
   D. industries that neither import nor export

4. Similar to import tariffs import quotas tend to result in ?

   A. higher prices and reduced imports
   B. increased government revenue
   C. increased consumer surplus
   D. decrease producer surplus

5. 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 ?

   A. 1,600 computers, decrease, increase
   B. 1,600 computers, increase, decrease
   C. 1,200 computers, decrease, increase
   D. 1,200 computers, increase, decrease

6. 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 ?

   A. 20 calculators increase
   B. 25 calculators decrease
   C. 25 calculators increase
   D. 30 calculators increase

7. Given free trade, small nations tend to benefit the most from trade since they ?

   A. Are more productive than their large trading partners
   B. Are less productive than their large trading partners
   C. Have demand preferences and income levels lower than their large trading partners
   D. Realize terms of trade lying near the MRTs of their large trading partners

8. Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?

   A. Trades at Canada’s marginal rate of transformation
   B. Trade at Sweden’s marginal rate of transformation
   C. Specializes completely in the production of its export good
   D. Specializes partially in the production of its exports goods

9. Those who argue in favor of import protection generally give the impression that such restricted trade will?

   A. decrease the level of national security
   B. provide benefits to some particular industry
   C. provide benefits to the entire nation
   D. not yield welfare losses for the nation

10. 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 ?

    A. an import tariffs
    B. a tariff rate quota
    C. a selective quota
    D. a global quota