A. free-trade area
B. customs union
C. common market
D. monetary union
Related Mcqs:
- Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals ?
A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent - With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?
A. 20 calculators increase
B. 25 calculators decrease
C. 25 calculators increase
D. 30 calculators increase - Under free trade suppose that Japan can supply radios t mexico at the price of $45 Therefore, Mexico’s imports equal ?
A. 5 radios
B. 10 radios
C. 15 radios
D. zero radios - Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?
A. be less than 12 percent and can be negative
B. be less than 12 percent but must be greater than zero
C. equal 6 percent
D. exceed 30 percent - For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?
A. the United States to Switzerland causing the dollar to depreciate
B. the United States to Switzerland causing the dollar to appreciate
C. Switzerland to the United States causing the franc to depreciate
D. Switzerland to the United States causing the franc to appreciate - For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?
A. The United States to Japan causing the dollar to depreciate
B. The United States to Japan causing the dollar to appreciate
C. The Japan to United States, causing the dollar to depreciate
D. The Japan to United States, causing the dollar to appreciate - 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 - Under free trade, Canada would not realize any gains from trade with Sweden if Canada ?
A. Trades at Canada’s marginal rate of transformation
B. Trade at Sweden’s marginal rate of transformation
C. Specializes completely in the production of its export good
D. Specializes partially in the production of its exports goods - When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation - Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?
A. higher than
B. equal to
C. lower than
D. there is no general pattern
