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 ?

Related Mcqs:

1. 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

2. 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

3. Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

   A. decreases, decreases
   B. decreases, increases
   C. increases, decreases
   D. increases, increases

4. Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?

   A. appreciation; trade surplus
   B. appreciation; trade deficit
   C. depreciation; trade surplus
   D. depreciation; trade deficit

5. Suppose that the domestic government allows a specific number of goods to be imported each year, but it does not specify from where the product is shipped or who is permitted to import Such a trade barrier is known as ?

   A. an import tariffs
   B. a tariff rate quota
   C. a selective quota
   D. a global quota

6. 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

7. Suppose that Russia steel firms engage in dumping in the German market in terms of overall economic welfare, German welfare would _______ as the result of the dumping?

   A. increase
   B. decrease
   C. not change
   D. None of These

8. 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

9. 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

10. Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?

    A. free-trade area
    B. customs union
    C. common market
    D. monetary union