non tariff trade barriers MCQs – Page 2

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

non tariff trade barriers Mcqs

21. Nontariff trade barriers could include all of the following except ?
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A. antidumping/countervailing duties applied to imports

B. domestic content laws

C. government procurement policies

D. health, safety, and environmental standards

22. Under a tariff- rate quota ?
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A. The within-quota tariff rate exceeds the over-quota tariff rate

B. The within-quota tariff rate plus over-quota tariff rate equal 100 percent

C. The within-quota tariff rate equals the over-quota tariff rate

D. the over-quota tariff rate exceeds the with-quota tariff rate

23. In the absence of trade, Canadas equilibrium price and quantity equal ?
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A. $55 and 20 calculators

B. $65 and 40 calculators

C. $45 and 25 calculators

D. $30 and 40 calculators

24. In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
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A. The quota results in efficiency reductions but the tariff does not

B. The tariff results in efficiency reductions but the quota does not

C. They have identical impact on how much is produced and consumed

D. They have identical impact on how income is distributed

25. By practicing price discrimination, the firm would realize profits totaling ?
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A. $420,000

B. $660,000

C. $540,000

D. $160,000

26. To maintain that South koreans are dumping their DVDs in the United States is to maintain that ?
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A. The cost of manufacturing DVDs in Korea is lower in Korea than in the U.S since wages are lower in Korea

B. Koreans are selling DVDs in the U.S below their production cost

C. Koreans are selling DVDs is the U.s above their productions cost

D. The cost of manufacturing DVDs in Korea is higher in Korea than in the U.S since wages are higher in Korea

27. In the absence of traded, Norways equilibrium price and quantity equal ?
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A. $3,500 and 2,000 computers

B. $2,500 and 2,000 computers

C. $1,500 and 2,800 computers

D. $2,000 and 1,600 computers

28. A attempts to limit outsourcing of jobs to foreigners by requiring that a minimum percentage of a products value must be produced domestically if that good is to be sold in the domestic market ?
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A. voluntary restraint agreement

B. domestic subsidy

C. tariff-rate quota

D. domestic content requirement

29. ___________ are quotas that lead to a complete abolishment of trade?
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A. orderly marketing agreements

B. voluntary export restraints

C. embargoes

D. nontariff barriers

30. If the home country government grants a subsidy on a domestically produced good domestic producers tend to ?
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A. Capture the entire subsidy in the form of higher profits

B. consider the subsidy as a increase in production cost

C. Increase their level of production

D. reduce wages paid to domestic workers

31. If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?
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A. They have different impacts on how much is produced and consumed

B. the quota results in efficiency reductions but the tariff does not

C. They have different impacts on how income is distributed

D. The tariff results in efficiency reductions but the quota does not

32. From the perspective of the American public as a whole, export subsidies levied by overseas governments on goods sold to the United States ?
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A. are equivalent to an export quota

B. hurt more then they help

C. help more than they hurt

D. are equivalent to an import quota

33. international dumping may involve ?
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A. selling goods to foreigners at a price below that charged domestic consumers

B. selling goods to foreigners at a price below the cost of production

C. antidumping duties being levied on the imported, dumped goods

D. All of the above

34. According to the cost-based definition of dumping, dumping occurs when a firm sells a product abroad at a price that is less than ?
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A. average total cost

B. average variable cost

C. marginal cost

D. average fixed cost

35. For year the U.S government levied quotas on inexpensive oil imported from the Middle East The quotas led to cost increases for U.S consumers totaling $3 billion for oil products. An apparent justification of this policy was that ?
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A. U.S oil companies and workers deserved higher incomes

B. one should not be too dependent on foreign suppliers of crucial resources

C. The U.S government needed the quota revenue to balance its budget

D. U.S oil was of superior quality and merited higher prices

36. ________ are profits that accrue to whomever has the right to import the good that is restricted by the quota?
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A. None of the above

B. quota prices

C. quota license

D. quota rents

37. 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 _________?
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A. 20 calculator, $50

B. 25 calculator, $100

C. 25 calculator, $50

D. 20 calculator, $100

38. Which company in the United States would likely be most concerned about Brazils dumping of steel in the U.S market ?
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A. Sneva Construction Co. The builder of skyscrapers

B. Tennessee Mining Co. an iron-ore mining company

C. General Motors, the manufacturer of automobiles

D. Caterpillar Corp the producer of earth moving equipment

39. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canadas 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 ?
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A. 30 calculators increase

B. 25 calculators decrease

C. 25 calculators increase

D. 20 calculators increase

40. Governments around the world tend to auction quota licenses ?
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A. always

B. often

C. never

D. seldom

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