MCQOPTIONS
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MCQOPTIONS
This section includes 66 Mcqs, each offering curated multiple-choice questions to sharpen your Economics Mcqs knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Free traders maintain that an open economy is advantageous is that it provides all of the following except ? |
| A. | Increased competition for world producers |
| B. | A wider selection of products for consumers |
| C. | The utilization of the most efficient production methods |
| D. | Relatively high wages levels for all domestic workers |
| Answer» E. | |
| 52. |
International trade forces domestic firms to become more competitive in terms of ? |
| A. | The introduction of new products |
| B. | Product design and quality |
| C. | Product price |
| D. | All of the above |
| Answer» E. | |
| 53. |
Arguments for free trade are sometimes disregarded by politicians because ? |
| A. | Maximizing domestic efficiency is not considered imports |
| B. | Maximizing consumer welfare may not be a chief priority |
| C. | There exist sound economic reasons for keeping one’s economy isolated from other economies |
| D. | Economists tend to favor high protected domestic markets |
| Answer» C. There exist sound economic reasons for keeping one’s economy isolated from other economies | |
| 54. |
Increased foreign competition tend to ? |
| A. | Intensify inflationary pressure at home |
| B. | Induce falling output per worker-hour for domestic workers |
| C. | Place constraints on the wages of domestic workers |
| D. | Increase profits of domestic import competing industries |
| Answer» D. Increase profits of domestic import competing industries | |
| 55. |
The largest amount of trade with the United States in recent years has been conducted by ? |
| A. | Canada |
| B. | Germany |
| C. | Mexico |
| D. | United Kingdom |
| Answer» B. Germany | |
| 56. |
International trade is based on the idea that ? |
| A. | Exports should exceed imports |
| B. | imports should exceed exports |
| C. | Resources are more mobile internationally than are goods |
| D. | Resources are less mobile internationally than are goods |
| Answer» E. | |
| 57. |
Major trading partners of the United States including all of the following countries except ? |
| A. | Canada |
| B. | Mexico |
| C. | China |
| D. | North Korea |
| Answer» E. | |
| 58. |
For the United states, exports plus imports are about _____ of its gross national product? |
| A. | 5 percent |
| B. | 10 percent |
| C. | 25 percent |
| D. | 55 percent |
| Answer» D. 55 percent | |
| 59. |
An optimal tariff is one which reduces imports to the level at which ____ equals ____? |
| A. | imports, exports |
| B. | the balance of trade, zero |
| C. | The demand for currency the supply of currency |
| D. | social marginal cost, social marginal benefit |
| Answer» E. | |
| 60. |
The imposition of a tariff causes consumption to _____ and imports to _________? |
| A. | rise, rise |
| B. | fall, rise |
| C. | fall, fall |
| D. | rise, fall |
| Answer» D. rise, fall | |
| 61. |
Economists suggest that an optimum tariff would be one which reduce imports to a point where___________? |
| A. | Comparative advantage is achieved |
| B. | Price elasticity of imports is unity and tariff revenue is maximized |
| C. | import prices are the same as export prices |
| D. | marginal social cost equals marginal social benefit |
| Answer» E. | |
| 62. |
If a group of countries abolish trade barriers between them and set same tariffs on goods coming in from other countries they are a ? |
| A. | common market |
| B. | free trade area |
| C. | customs union |
| D. | federation |
| Answer» D. federation | |
| 63. |
Recent pressures for protectionism in the United States have been motivated by all of the following except ? |
| A. | U.S firms shipping component production overseas |
| B. | High profit levels for American corporations |
| C. | Sluggish rates of productivity growth in the United States |
| D. | High unemployment rates among America workers |
| Answer» C. Sluggish rates of productivity growth in the United States | |
| 64. |
The main cause of different relative costs between countries are ? |
| A. | relative factor competition |
| B. | relative factor mobility |
| C. | relative factor substitution |
| D. | relative factor endowments |
| Answer» E. | |
| 65. |
A primary reason why nations conduct international trade is because ? |
| A. | Some nations prefer to produce one thing while others produce another |
| B. | Resources are not equally distributed to all trading nations |
| C. | Trade enhances opportunities to accumulate profits |
| D. | interest rates are not identical in all trading nations |
| Answer» C. Trade enhances opportunities to accumulate profits | |
| 66. |
Government payments made to domestic firms in order to encourage exports are called ? |
| A. | Side payments |
| B. | Tariffs |
| C. | subsidies |
| D. | export quotas |
| Answer» D. export quotas | |