Policies to reduce factor price distortion include?

Related Mcqs:

1. According to the factor price equalization theorem, the ________ factor should oppose free. trade policies in any given country?

   A. abundant
   B. scarce
   C. neither
   D. can’t tell without more information

2. A comparison of Japan’s policies before 1945 with the policies in effect after 1945 indicates that______________?

   A. reduction in spending on military goods leads to economic depression
   B. dependence on foreign trade usually leads to a weakened national economy
   C. territorial aggression is not necessary to secure national economic goals
   D. democratic institution hinder economic growth

3. Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?

   A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
   B. tradable pollution permits, Pigouvian taxes, command-and-control policies
   C. tradable pollution permits command-and-control policies, Pigovian taxes.
   D. command-and-control policies, tradable pollution permits, Pigovian taxes.
   E. They would all rank equally high because the same result can be obtained from any one of the policies

4. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

5. Policies to reduce unemployment by reducing union power, tax cuts, reductions in unemployment benefit and investment subsidies are examples of ?

   A. Keynesian policies
   B. Supply-side policies
   C. Monetarist Policies
   D. Classical policies

6. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

7. Policies to encourage productivity do not include ?

   A. building more retail outlets
   B. encouraging risk-taking
   C. encouraging innovation
   D. encouraging R & D

8. The type of trade promotion discount in which manufacturers agree to reduce the price to the retailer in exchange for the retailer’s agreement to feature the manufacturer’s products is some way is called a(n) ?

   A. discount
   B. allowance
   C. premium
   D. rebate

9. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

   A. 1.4
   B. 0.66
   C. 0.75
   D. 2.0

10. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raise its price to Rs 40 per month the number of subscribers will fall to 20000 At which of the following price does small Town Cablevision earn the greatest total revenue ?

    A. Rs 0 per month
    B. Rs 30 per month
    C. Rs 40 per month
    D. Either Rs 30 or Rs 40 per month because the price elasticity of demand is 1.0