A. International trade affords producers monopoly power
B. National governments levy imports tariffs and quotas
C. Producing goods entails increasing costs
D. Economies of scale exist for producers
Related Mcqs:
- A natural monopoly has a declining _______ over a large range of output?
A. long run marginal cost
B. short run marginal cost
C. long run average cost
D. long run marginal cost - Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The accounting profit at Naila’s pottery factory is ?
A. Rs30,000
B. Rs35,000
C. Rs75,000
D. Rs70,000 - Naila owns a small pottery factory. She can make 1000 pieces of pottery per year and sell them for Rs 100 each. It costs Naila Rs 20,000 for the raw materials to produce the 1,000 pieces of pottery She has invested Rs100,000 in her factory and equipment: Rs50,000 from her savings and Rs50,000 borrowed at 10 per cent. (Assume that she could have loaned her money out at 10 her per cent, too) Naila can work at a competing pottery factory for Rs40,000 per year. The economics profit at Naila’s pottery factory is ?
A. Rs80,000
B. Rs30,000
C. Rs75,000
D. Rs70,000 - Should international transportation costs decrease the effect on international trade would include a (an) ?
A. increase in the volume of trade
B. Smaller gain from trade
C. Decline in the income of home producers
D. Decrease in the level of specialization in production - 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 - Which round of international trade negotiations resulted in the creation of the World Trade Organization ?
A. Kennedy Round of 1964-1967
B. Tokyo Round of 1973-1979
C. Uruguay Round of 1986-1993
D. Doha Round of 2003-2007 - Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?
A. current profit maximization
B. product quality leadership
C. Market share leadership
D. Survival - According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
A. similar endowments of natural resources
B. similar levels of technology
C. similar per-capita incomes
D. similar wage levels - By reducing the volume of trade transportation costs tend to ?
A. stop the process of product price equalization and factor price equalization before they are complete:
B. ensure that the process of product price equalization and factor price equalization are complete
C. eliminate all of the feasible gains from international trade
D. maximize all of the feasible gains from international trade - Following World War II the United States and other countries sought to liberalize trade among each other the first major postwar step toward trade liberalization was the ?
A. General Agreement on Tariffs and Trade
B. World Trade Organization
C. Smoot Hawley Organization
D. McKinley Agreement on Trade policy
