A. exports, subsidies
B. exports, patents
C. imports, high tariffs or import quotas
D. imports, subsidies
Related Mcqs:
- If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
A. falls; rise; falls; surplus
B. is static; low; rise; deficit;
C. falls; falls; falls; surplus
D. rise; falls; rises; deficit - ________ protection such as the escape clause, provide temporary protection to domestic industries facing competition from fairly traded foreign goods?
A. generalized system of preference
B. countervailing duty
C. domestic content
D. safeguards - The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it
A. increase; increase
B. increase; reduce
C. reduce; reduce
D. reduce; increase - 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 - Import substitution is an example of ?
A. the principle of comparative advantage
B. the principle of absolute advantage
C. an outward-looking growth strategy
D. an inward-looking growth strategy - Many developing countries instituted import substitution policies because ?
A. the prices of the goods they imported were falling
B. the price of goods they exported were increasing
C. their terms of trade were deteriorating
D. their terms of trade were improving - ____ was a strategy for industrial development popular in Latin America in the 1950s 1 1960s for promoting domestic production by erecting high protective tariffs on imports of manufactured goods ?
1. export led growth
2. import substitution
3. dynamic hedging
4. countervailing duties - 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 - 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 - During periods of growing domestic demand, an import quota ?
A. is less restrictive on a country’s imports than a tariff
B. Is more restrictive on a country’s imports than a tariff
C. has the same restrictive effect on a country’s imports as a tariff
D. will always generate increased tax revenue for the government
