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
Related Mcqs:
- 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 - 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 ?
A. Financial assistance given by one person or government to another
B. Financial assistance given to poor people
C. Financial assistance given to aged people
D. Financial assistance given to small companies - A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a product’s value must be produced domestically if that good is to be sold in the domestic market ?
A. domestic subsidy
B. voluntary restraint agreement
C. domestic content requirement
D. tariff-rate quota - Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?
A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
B. Increase the Price of computers to consumers in the United States
C. Increase the Production of computers in the United States
D. Increase the production of computer components in the United States - A subsidy paid to producers ?
A. Shifts the supply curve
B. shifts the demand curve
C. Leads to a contractions in supply
D. Leads to an extension of supply - An index of prices of all domestically produced goods in the economy is the ?
A. wholesale price index (WPI)
B. Consumer price index (CPI)
C. GDP deflator
D. Producer price index (PPI) - What is called protection of domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest - What is called the advocacy of protecting domestic producers by impeding or limiting the importation of foreign goods and services ?
A. Domestication
B. Protectionism
C. Localization
D. National interest - The real income of domestic producers and consumers can be increased by ?
A. Technological progress, but not international trade
B. International trade but not technological progress
C. Technological Progress and international trade
D. Neither technological progress nor international trade - Domestic producers gain ________ because on the tariff?
A. $50,000
B. $75,000
C. $120,000
D. $150,000
