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non tariff trade barriers MCQs

Practise focused non tariff trade barriers questions with marked answers for exam preparation and subject revision.

non tariff trade barriers Mcqs

1. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norways imports will now equal. Compared to What occurred in the absence of trade, Norways consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
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A. 1,600 computers, increase, decrease

B. 1,200 computers, increase, decrease

C. 1,600 computers, decrease, increase

D. 1,200 computers, decrease, increase

2. Antidumping duties are used to ?
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A. reduce the tariff revenue of the domestic government

B. discourage foreign governments from subsidizing their exporters

C. punish domestic consumers for buying high-priced imported goods

D. offset the margin of dumping

3. The welfare effects of a quota depend to a considerable extent upon ?
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A. All of the above

B. the size of the quota

C. who has the quota license

D. elasticities of domestic demand and supply

4. Import quotas tend to result in all of the following except ?
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A. Prices increasing in the importing country

B. domestic consumers of the imported good being harmed

C. Prices falling in the exporting country

D. domestic producers of the imported good being harmed

5. The form of dumping that represents the greatest potential net welfare loss the for importing national is ?
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A. sporadic dumping

B. yearend dumping

C. persistent dumping

D. predatory dumping

6. A specification of a maximum amount of a foreign produced good that will be allowed to enter the country over a given time period is referred to as a (an) ?
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A. import quota

B. domestic subsidy

C. export subsidy

D. export quota

7. A tariff-rate quota ?
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A. is a two-tier tariff system intended to restrict imports?

B. is a limit on the number of tariffs that a country can place on imports?

C. is designed to avoid the the price increases caused by simple tariffs

D. uses a single tariff along with import quotas to restrict import

8. The reason for dumping is that the demand curve for ABC Cos computers is _______ because ________ are available from other nations?
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A. more elastic in Japan, fewer substitutes are available from other; nations

B. more elastic in Japan, more substitutes are available from other nations

C. more inelastic in Japan; more substitutes are available from other; nations

D. more inelastic in Japan; fewer substitutes are available from other nations

9. To reduce imports, suppose that the government of Norways imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norways consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?
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A. decrease, decrease

B. increase, decrease

C. decrease, increase

D. increase, increase

10. Buy national policies ?
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A. attempt to restrict the number of tourists leaving a nation

B. result in government purchase policies favoring domestic over foreign producers

C. result in government purchase policies favoring foreign over domestic producers

D. are intended to publicize the advantage of the most efficient domestic companies

11. The form of international price discriminations (dumping) normally associated with economic recession or excess inventories in the exporting nation is known as ?
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A. persistent dumping

B. year end dumping

C. sporadic dumping

D. Predatory dumping

12. The home country government can confiscate the revenue effect of an import quota if ?
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A. quota licenses are given to foreign exporting companies

B. quota licenses are auctioned to the highest bidding importing company

C. if quota licenses are given to domestic consumers of the good

D. Both A and C

13. In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
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A. Orderly marketing

B. trigger pricing

C. domestic content pricing

D. dumping

14. If imports licenses are auctioned off to domestic importers in competitive market their scarcity value (revenue effect) accrues to ?
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A. foreign corporations

B. foreign workers

C. The domestic government

D. domestic corporations

15. ________ occurs when a firm disposes on foreign markets a temporary increases in inventories caused by unforeseen changes in supply and demand conditions in the home economy?
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A. predatory dumping

B. persistent dumping

C. sporadic dumping

D. foreign dumping

16. A production subsidy that is granted to a producer of an import-competing good ?
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A. does not require government taxes to finance it

B. yields the same deadweight welfare loss as an import tariff or import quota

C. has only a protective effect deadweight loss

D. has only a consumption effect deadweight loss

17. Export subsidies levied by foreign governments on products in which the Pakistan the comparative disadvantage ?
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A. lead to increases in Pakistani consumer surplus

B. encourage Pakistani workers to demand higher wages

C. lower the welfare of all Pakistanis

D. encourage Pakistans production of competing goods

18. 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 ?
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A. a global quota

B. an import tariffs

C. a selective quota

D. a tariff rate quota

A. increased government revenue

B. increased consumer surplus

C. higher prices and reduced imports

D. decrease producer surplus

20. A(n) ________ is n example of a quota where foreigners hold quota licenses ?
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A. export quota

B. tariff quota

C. embargo

D. auction quota

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