International Economics-Terms of Trade [GATE (Graduate Aptitude Test in Engineering) Economics]: Questions 1 - 4 of 16

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Question 1

Question

MCQ▾

According to Rybczynski theorem, what would happen to the countries TOT when we have increment in the factor availability for the production of goods which we export?

Choices

Choice (4)Response

a.

Increment of factor, means production will improve, means we can export more, means TOT will improve

b.

Increment of factor, means production will decrease, means we can import more, means TOT will improve

c.

Increment of factor, means production will decrease, means we can export more, means TOT will improve

d.

Increment of factor, means production will improve, means we can export more, means TOT will decline

Question 2

Question

MCQ▾

The tariff imposed in which is a combination of ad valorem and specific tax is called …

Choices

Choice (4)Response

a.

Compound tariff

b.

Double tariff

c.

Super tariff

d.

Multiplied tariff

Question 3

Question

MCQ▾

Tariffs would improve the terms of trade for A country only if …

Choices

Choice (4)Response

a.

The offer curve of B country is elastic.

b.

The offer curve of A country is inelastic.

c.

The offer curve of A country is elastic

d.

The offer curve of B country is inelastic.

Question 4

Question

MCQ▾

Which of the following is not a “non-tariff barrier” ?

Choices

Choice (4)Response

a.

Antidumping tariffs

b.

Protectionist tariff

c.

Countervailing duties

d.

Environment regulations

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