It costs a computer manufacturer £2000 to produce a personal computer. This manufacturers sells these computers abroad for £1800. This is an example of A) a trade-related economy of scale. B) export subsidy. C) dumping. D) a negative tariff.
It costs a computer manufacturer £2000 to produce a personal computer. This manufacturers sells these computers abroad for £1800. This is an example of A) a trade-related economy of scale. B) export subsidy. C) dumping. D) a negative tariff.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
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Chapter19: International Trade
Section: Chapter Questions
Problem 14PAE
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Can you answer those questions, please?
46) It costs a computer manufacturer £2000 to produce a personal computer. This manufacturers sells these computers abroad for £1800. This is an example of
- A) a trade-related economy of scale. B) export subsidy.
- C) dumping. D) a negative tariff.
47) Which of the following is NOT a valid argument for protection?
- A) To keep declining industries going in the long run in order to safeguard jobs
- B) To prevent dumping by other countries from giving them an unfair advantage over domestic suppliers
- C) To allow infant industries to survive foreign competition
- D) To allow older industries with a potential
comparative advantage a chance to make significant investments
48) The trade effect of Brexit for the UK is likely to be
- A) a reduction in trade with the EU.
- B) either a reduction or an increase in trade between the UK and non-EU countries.
- C) a reduction in both inward and outward capital flows between the UK and the EU.
- D) A and B
- E) A, B and C
49) Which one of the following would appear as a debit item in the UK balance of payments?
- A) Honda invests in a new factory in the UK.
- B) American tourists fly BA.
- C) A Japanese pension fund buys shares in a British oil company.
- D) Foreign tourists spend money in London.
- E) A British wine merchant purchases wine from Chile
50) Which of the following policies could a government or central bank pursue to prevent the exchange rate from
- A) Raise interest rates
- B) Increase the money supply through open-market operations
- C) Raise taxes
- D) Buy foreign currencies on the foreign exchange market
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