Chapter 5  Nontariff Trade Barriers

Chapter 5 Nontariff Trade Barriers

Assessment

Quiz

Science

1st Grade

Easy

Created by

Su Su

Used 1+ times

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15 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

To maintain that South Koreans are dumping their VCRs in the United States is to maintain that

the cost of manufacturing VCRs in Korea is higher in Korea than in the United States because wages are higher in Korea

the cost of manufacturing VCRs in Korea is lower in Korea than in the United States because wages are lower in Korea.

Koreans are selling VCRs in the United States above their production cost.

Koreans are selling VCRs in the United States below their production cost.

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

. If import licenses are auctioned off to domestic importers in a competitive market, their scarcity value (revenue effect) accrues to

the domestic government.

domestic corporations.

foreign workers.

foreign corporations.

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

In certain industries, Japanese employers do not 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

dumping.

domestic content pricing.

trigger pricing.

orderly marketing.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Import quotas tend to lead to all of the following, except

prices falling in the exporting country.

prices increasing in the importing country.

domestic consumers of the imported good being harmed.

domestic producers of the imported good being harmed.

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Domestic content legislation applied to autos would tend to

increase profits of American auto companies.

encourage American automakers to locate production overseas.

lower auto prices for American autoworkers.

support wage levels of American autoworkers.

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

A firm that faces problems of falling sales and excess productive capacity might resort to international dumping if it

is able to force foreign prices below marginal production costs.

can sell at that price where domestic and foreign demand elasticities equate.

earns revenues on foreign sales that at least cover variable costs.

can charge higher prices in markets that are elastic to price changes.

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following refers to a market-sharing pact negotiated by trading partners to moderate the intensity of international competition?

trigger price mechanism

local content requirements

import quota

orderly marketing agreement

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