Government granted monetary assistance to a person or a group in support of an enterprise regarded as being in public interest. This is called subsidy. Point out the statement which is also a subsidy ?

Related Mcqs:

1. To aid its calculator producers, suppose that the government provides them a subsidy of $10 for each calculator produced The amount of imports now equals _____ and the deadweight loss of the subsidy to the Canadian economy equals _________?

   A. 20 calculator, $50
   B. 20 calculator, $100
   C. 25 calculator, $50
   D. 25 calculator, $100

2. A production subsidy that is granted to a producer of an import-competing good ?

   A. does not require government taxes to finance it
   B. yields the same deadweight welfare loss as an import tariff or import quota
   C. has only a consumption effect deadweight loss
   D. has only a protective effect deadweight loss

3. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

   A. indicative plan
   B. central bank policies
   C. central planning
   D. instrument variables

4. A share or an interest in an enterprise, especially a financial share, is called ?

   A. Share holding
   B. Stake
   C. Partnership
   D. None of these

5. Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were know as ?

   A. Structural adjustment loans
   B. sectoral adjustment loans
   C. internal adjustment loans
   D. external leverage loans

6. Shortly after 1979 World Bank introduced loans that emphasized reforms in trade, agriculture industry public enterprise financial energy education or other sectors and were known as ?

   A. Structural adjustment loans
   B. sectoral adjustment loans
   C. internal adjustment loans
   D. external leverage loans

7. Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?

   A. Free market economy
   B. Laissez faire also Laisser faire
   C. Open market economy
   D. Liberal market economy

8. To help its firms penetrate Mexico’s radio market suppose the Japanese government provides them a subsidy of $15 for each radio shipped to Mexico As a result of this trade policy ?

   A. The price of radios in Mexico equals $60 and its imports equal 30 radios
   B. The price of radios in Mexico equals $30 and its imports equal 30 radios
   C. The price of radios in Mexico equals $40 and its imports equals 20 radios
   D. Th price of radios in Mexico equals $20 and its imports equal 40 radios

9. If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?

   A. Capture the entire subsidy in the form of higher profits
   B. Increase their level of production
   C. reduce wages paid to domestic workers
   D. consider the subsidy as a increase in production cost

10. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

    A. the United States to Switzerland causing the dollar to depreciate
    B. the United States to Switzerland causing the dollar to appreciate
    C. Switzerland to the United States causing the franc to depreciate
    D. Switzerland to the United States causing the franc to appreciate