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.Management Sciences
Category: The International Economy And Globalization
The term tariff, as used in international trade refers to ?
A. The price of goods when they leave the producing country
B. a limit on the quantity of a good that can be imported into a country
C. a tax on imports
D. a government payment to encourage exports
The real income of domestic producers and consumers can be increased by ?
A. Technological progress, but not international trade
B. International trade but not technological progress
C. Technological Progress and international trade
D. Neither technological progress nor international trade
What is not a feature of the EU as a single market ?
A. Elimination of border controls
B. No import taxes on goods bought in another members country
C. Each country can retain its own technical standards
D. Common security arrangements
In a floating exchange rate system ?
A. The government intervenes to influence the exchange rate
B. The exchange rate should adjust to equate the supply and demand of the currency
C. The Balance of payments should always be in surplus
D. The Balance of payments will always equal the government budget
A demand switching policy could be ?
A. Higher interest rates
B. Higher income tax
C. Tariffs
D. Reduced government spending
The marginal propensity of consume is equal to ?
A. Total spending / total consumption
B. Total consumption / total income
C. Change in consumption / change in income
D. Change in consumption / change in savings
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
When free trade areas are set up the member countries trade with each other grows faster than their trade with other countries This is due to what economist call ?
A. trade diversion
B. trade channeling
C. trade creation and trade diversion
D. trade creation
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
If a country has a burden of debt it cannot sustain it can ?
A. reschedule debt
B. get a loan from an international organization
C. default on the loan
D. any of the above
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