What do ‘buy national’ policies do?
Correct answer A. Result in government purchase policies favoring domestic over foreign producers
Topic / 41 questions
Non-Tariff Trade Barriers MCQs
Page 2 of Non-Tariff Trade Barriers multiple-choice questions with answers. Tap an option to check yourself.
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- Miscellaneous Economics 737
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What is true under a tariff-rate quota?
Correct answer A. The over-quota tariff rate exceeds the within-quota tariff rate
A government permits a set number of goods to be imported each year but does not say where they must come from or who may import them. What is this trade barrier called?
Correct answer B. A global quota
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For the American public as a whole, what is the effect of export subsidies paid by foreign governments on goods sold to the United States?
Correct answer B. They help more than they hurt
ABC Co. sells its computers in Japan at a lower price than in its home market. This dumping happens because demand for ABC’s computers in Japan is ____ because ____ are available from other nations?
Correct answer D. More elastic in Japan; more substitutes are available from other nations
What is the effect of foreign government export subsidies on goods in which Pakistan has a comparative disadvantage?
Correct answer A. Lead to increases in Pakistani consumer surplus
What is a limit on the maximum quantity of a foreign-produced good allowed into a country over a given period called?
Correct answer C. Import quota
Which statement correctly describes a tariff-rate quota?
Correct answer D. It is a two-tier tariff system intended to restrict imports
If the home government subsidises a domestically produced good, how do domestic producers tend to respond?
Correct answer C. Increase their level of production
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For years the US government imposed quotas on cheap Middle Eastern oil, raising US consumers’ oil costs by about $3 billion. What was an apparent justification for this policy?
Correct answer A. One should not be too dependent on foreign suppliers of crucial resources
Quotas are government-imposed limits on which aspect of goods traded between countries?
Correct answer C. Quantity
Like import tariffs, what do import quotas usually lead to?
Correct answer A. Higher prices and reduced imports
What are the profits earned by whoever holds the right to import a good restricted by a quota called?
Correct answer C. Quota rents
How often do governments around the world auction import quota licences?
Correct answer C. Seldom
What can international dumping involve?
Correct answer D. All of the above
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What is true of a production subsidy granted to a producer of an import-competing good?
Correct answer D. Has only a protective effect deadweight loss
Which policy tries to limit the outsourcing of jobs abroad by requiring that a minimum share of a product’s value be produced at home before it can be sold domestically?
Correct answer D. Domestic content requirement
Which form of dumping is likely to cause the greatest net welfare loss for the importing nation?
Correct answer D. Predatory dumping
Under the cost-based definition of dumping, a firm dumps when it sells a product abroad at a price below which cost?
Correct answer D. Average total cost
What type of quota permits a set quantity of a good to be imported each year without specifying the source country or who may import it?
Correct answer A. Global quota