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

Related Mcqs:

1. 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

2. The movement to free international trade is most likely to generate short-term unemployment in which industries ?

   A. Industries in which there are neither imports nor exports
   B. Imports competing industries
   C. Industries that sell to domestic and foreign buyers
   D. Industries that sell to only foreign buyers

3. 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

4. Unemployment benefits may increase the unemployment rate because unemployment benefits ?

   A. encourage people to quit their jobs
   B. reduce the cost of job search
   C. enable people to quit searching for work
   D. reduce the benefits of additional job searching

5. 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

6. In the short run unemployment may fall below the natural rate of unemployment if ?

   A. Nominal wages have risen less than inflation
   B. Nominal wages have risen at the same rate as inflation
   C. Nominal wages have risen more than inflation
   D. Nominal wages have risen less than unemployment

7. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

8. 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

9. Trade creation will more likely outweigh trade diversion for Country X that forms a customs union if the level of tariffs in Country X prior to the customs union is ________ and the total number of countries forming the customs union is _________?

   A. relatively high; relatively large
   B. relatively high; relatively small
   C. relatively low ; relatively large
   D. relatively low ; relatively small

10. When did World Trade Organization replace General Agreement on Tariffs and Trade (GATT)?

    A. 1st January 1995
    B. 1st January 1998
    C. 1st December 1999
    D. 1st June 2000

    Submitted by: Syed Nizakat Ali Shah