____ was a strategy for industrial development popular in Latin America in the 1950s 1 1960s for promoting domestic production by erecting high protective tariffs on imports of manufactured goods ?

Related Mcqs:

1. S = Savings, I = domestic investment, X = exports of goods and services, and M = imports of goods and services Which of the following is true ?

   A. S – I = X = M
   B. S + I = X + M
   C. S = I – (X+M)
   D. S-I = X/M

2. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

3. _________ policies attempt to foster industrialization by establishing high barriers to imports of foreign goods to promote local production ?

   A. absolute advantage
   B. comparative advantage
   C. export-led growth
   D. import substitution

4. An optimal tariff is one which reduces imports to the level at which ____ equals ____?

   A. imports, exports
   B. the balance of trade, zero
   C. The demand for currency the supply of currency
   D. social marginal cost, social marginal benefit

5. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

6. Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?

   A. Progressive and thus bear down on the wealthy
   B. regressive and thus bear down on the poor
   C. proportional and thus bear down on all consumers in the same manner
   D. deflationary and thus result in reductions in the price of imports

7. When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?

   A. free trade area
   B. customs union
   C. common market
   D. economic union

8. Poor developing countries typically impose __________ tariffs than rich advanced nations on imports?

   A. lower
   B. higher
   C. about the same height
   D. None of the above

9. Import substitution is the replacement of ____ by domestic production _____ protection of ________?

   A. exports, subsidies
   B. exports, patents
   C. imports, high tariffs or import quotas
   D. imports, subsidies

10. When imports from a higher-cost supplier within a customs union replace imports from a lower-cost supplier outside the custom union, there exists ?

    A. trade creation
    B. trade diversion
    C. dynamic welfare effects
    D. comprehensive welfare effects