A. increase
B. decrease
C. not change
D. None of These
Related Mcqs:
- The market power effect of an international joint venture can lead to welfare losses for the domestic economy unless offset by cost reductions. Which type of cost reduction would not lead to offsetting welfare gains for the overall economy ?
A. R&D generating welfare improved technology
B. development of more productive machinery
C. new work rules promoting workers efficiency
D. lower wages extracted from workers - According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
A. average total cost
B. average variable cost
C. average fixed cost
D. marginal cost - Suppose that Boeing is to receive payment in euros in 6 month and wants to engage in hedging the firm would _______ euros on the 6-month forward market in order to protect itself from a/an of the euro?
A. sell; appreciation
B. sell; depreciation
C. buy; depreciation
D. buy; appreciation - 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 - Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?
A. X to point Y
B. X to point Z
C. Y to point X
D. Z to point X - Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?
A. Z to point X
B. X to point X
C. X to point Z
D. Y to point X - Suppose there is an increase in the both the supply and demand for personal computers Further, suppose the supply of personal computer increase more than demand for personal computers In the market for personal computers i the market for personal computers, we would expect ?
A. the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
B. the equilibrium quantity to rise and the equilibrium price to rise
C. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous
D. the equilibrium quantity to rise and the equilibrium price to fall
E. the equilibrium quantity to rise and the equilibrium price to remain constant - Which company in the United States would likely be most concerned about Brazil’s dumping of steel in the U.S market ?
A. General Motors, the manufacturer of automobiles
B. Tennessee Mining Co. an iron-ore mining company
C. Caterpillar Corp the producer of earth moving equipment
D. Sneva Construction Co. The builder of skyscrapers - Given a two-country world, suppose Japan devalues the yen by 20 percent and west German devalues the mark by 15 percent This result is a (an)?
A. appreciation in the value of both currencies
B. depreciation in the value of both currencies
C. appreciation in the value of the yen against the mark
D. depreciation in the value of the yen against the mark - The form of dumping that represents the greatest potential net welfare loss the for importing national is ?
A. predatory dumping
B. sporadic dumping
C. persistent dumping
D. yearend dumping
