If A forms a customs union with B, A will import ?

Related Mcqs:

1. 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

2. If A forms a customs union with C, the value of trade diversion will be ?

   A. $0
   B. $10,000
   C. $20,000
   D. $40,000

3. 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

4. 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

5. 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

6. In free trade A will import ?

   A. 700 units from country C
   B. 700 units from country C and 600 units from country B
   C. 600 units from country C
   D. 600 units from country C and 400 units from country B

7. Under the EU’s Common Agricultural Policy, a variable import levy equals the ?

   A. amount the which the EU’s support price exceeds the world price
   B. amount by which the world price exceeds the EU’s support price
   C. support price of the EU
   D. world price

8. If A imposes a per unit tariff of $10 on imports from both B and C A will import ?

   A. 400 units from B
   B. 200 units from C
   C. 200 units from each
   D. 400 units from B and 200 units from C

9. According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?

   A. scientific tariff argument
   B. infant industry argument
   C. beggar they neighbor argument
   D. foreign dumping argument

10. If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?

    A. fluctuate more than it would do otherwise
    B. appreciate
    C. depreciate
    D. not be affected