PPSC Economics Topic 5 International Economics With Answers

PPSC Economics Topic 5 International Economics

Sr. # Questions Answers Choice
1 Tariff levels in advanced countries tend to be ___ tariff levels in developing countries. Higher than Equal to Lower than There is no general pattern
2 Import substitution is an example of The principle of comparative advantage The pricnipal of absolute advantage An outward looking growth strategy An inward looking growth strategy
3 Which of the following strategies have developing countries not used to deal with the problem of unstable export markets. Multilateral contracts Production and export controls Buffer stock arrangements Tariff rate quotes
4 Among the institutions and polices that have been created to support developing countries are. the World bank The international Monetary Fund The Generalized system of Preferences All of the above
5 To stabilize the prices of primary products international commodity agreements have utilized all of the following except. Tariff -rate quotas applied to imported goods. Production and export controls. Buffer stocks Multilateral contracts
6 All of the following are trade problems of developing countries except. Unstable export markets improving terms of trade Limited access to the markets of industrial countries Highly elastic demand curves for their products.
7 To help developing nations strengthen their international competitive rises many industrial nations have granted non nations udder the . International commodity engravement's program Multilateral contract program Generalized system of preferences program Export led growth program
8 To be considered a good candidate for an export cartel a commodity should. Be a manufactured good Be a primary product Have a high price elasticity of supply Have a low price elasticity of demand
9 The arrangement where goods imported from trading partners in the developing world are subject to lower tariff rates than goods from other countries is referred to as. Normal trade relation status Most favored nation status Most favored nation status Generalized system of preferences
10 A widely used indicator to differentiate developed countries from developing countries is. International trade per captia Real income per capita Unemployment per capita Calories per capita
11 Which industrialization policy has developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation. Export promotion Import substitution International commodity agreements Multilateral contrracts.
12 The theory of ___________ suggests that government can assist domestic companies in capturing economic profits from foreign competitors International dumping Countervailing duties Strategic trade policy Export promotion policy
13 The organization that currently establishes rules of conduct for firms engaging in international trade is the. World Bank International Trade commission Department of Justice World Trade Organization
14 The effect of the most favored nation clause is to. Eliminate all tariffs between countries Increase all tariff rates between countries. Maintain a nondiscriminatory structure of tariffs Maintain a discriminatory structure of tariffs
15 The result of antidumping tariffs is to. increase consumer surplus in the importing country Decrease producer surplus in the importing country Impose a price floor on foreign prices in the importing country Impose a price celling on foreign prices in the importing county
16 Anti dumping duties applied to imported goods. Are abolished by the world Trade Organization Result in decreases in consumer surplus for domestic households Are imposed by industrial countries but not developing countries. Result in lower priced goods for domestic consumers
17 The world trade organization is sometimes criticized for all of the following reasons except. If reduces the sovereignty of member countries. Favors free trade over the quality of the environment It has no way to solve trade disputes among member countries. It is a "puppet" of multinational corporations
18 All of the following are fundamental to the world trade organization except. Bilateral tariff reductions to promote trade liberalization. the use of the most favored nation clause Nondiscrimination trading relationships The prohibition of import quotas and export quotas
19 Those who argue in favor of import protection generally give the impression that such restricted trade will. Decrease the level of national security Provide benefits to some particular industry Provide benefits to the entire nation Not yield welfare losses for the nation
20 When one country provides most favored nation status for another if agrees to. Change that nation's product a lower tariff than any other nations Charge that nation's products a tariff rate no higher than that on any other nation. Charge that nation's products a higher tariff than any other nation's Export to that nation any products that it wants to purchase
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