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Economics Mcqs

If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?

Economics Mcqs, Tariffs /
If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?

A. valid for stereos, but nor for most products imported by Pakistan
B. valid for most products imported by Pakistan but not for stereos
C. deceiving since Koreans eventually spend the dollars on Pakistani goods
D. deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas

If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ? Read More »

Economics Mcqs, Tariffs

For advanced countries such as the United States, tariffs on imported raw materials tend to be ?

Economics Mcqs, Tariffs /
For advanced countries such as the United States, tariffs on imported raw materials tend to be ?

A. equals to tariffs on imported manufactured goods
B. lower than tariffs on imported manufactured goods
C. higher than tariffs on imported manufactured goods
D. The highest of all tariffs

For advanced countries such as the United States, tariffs on imported raw materials tend to be ? Read More »

Economics Mcqs, Tariffs

The national security argument for protection is more likely to be valid when ?

Economics Mcqs, Tariffs /
The national security argument for protection is more likely to be valid when ?

A. The purpose is to maintain protection for an indefinite time period
B. The industry is characterized by increasing returns to scale
C. The economy operates during a recession
D. The protected industry provides invaluable goods during periods of war

The national security argument for protection is more likely to be valid when ? Read More »

Economics Mcqs, Tariffs

If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?

Economics Mcqs, Tariffs /
If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?

A. nominal tariff rate on the final product equals the effective tariff rate on the product
B. nominal tariff rate on the final product is greater than the effective rate on the product
C. nominal tariff rate on the final product is less than the effective tariff rate on the final product
D. None of the above

If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ? Read More »

Economics Mcqs, Tariffs

Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?

Economics Mcqs, Tariffs /
Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?

A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
B. Increase the Price of computers to consumers in the United States
C. Increase the Production of computers in the United States
D. Increase the production of computer components in the United States

Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ? Read More »

Economics Mcqs, Tariffs

If a country an imposes an import tariff, its welfare can improve if ?

Economics Mcqs, Tariffs /
If a country an imposes an import tariff, its welfare can improve if ?

A. the country is a small country rather than a larger country
B. its terms of trade improve enough
C. The tariff enhances the welfare of its trading partners
D. Its government’s tax revenue increases because of the tariff

If a country an imposes an import tariff, its welfare can improve if ? Read More »

Economics Mcqs, Tariffs