Below are mcqs (each have 4 options)

Please answer all

QUESTION 12

1. Intra-industry trade can be explained in part by:

transportation costs within and between countries

different tastes or preferences

increasing returns to scale

all of the above

QUESTION 13

1. Which of these measures would you use to investigate the occurrence of dumping?

P₁<MC

P₁< Fair Value (FV)

Selling price abroad (P₁) < Home price (P_h)

All of the above.

QUESTION 14

1. Suppose that the free world price is $20 per unit and the price after quota is $30 per unit. The amount of quota is 100 units. The quota rent is:

$25.

$30.

$500.

$1,000.

QUESTION 15

1. Country ABC has the following statistics in its BoP:
3. Current account = -$680 billion
4. Capital account= +$650 billion dollars

Country ABC is a net lender to the world.

Country ABC is a net borrower from the world.

Statistical discrepancy is +$30 billion.

(a) and (c).

(b) and (c).

QUESTION 16

1. A most likely example (s) of the country ABC is (are).

China.

Japan.

United States.

Turkey.

(c) and (d).

QUESTION 17

1. The optimal tariff for a large country is the tariff that maximizes

consumer surplus.

producer surplus.

the difference between the tariff paid by the foreign exporter and the (total) dead weight costs of the tariff (e - b-d).

the difference between consumer surplus and producer surplus.

QUESTION 18

1. Country XYZ's saving is $250 billions and its investment is $230 billion. This country has a:

deficit in the current account.

surplus in the current account.

deficit in the capital account.

surplus in the capital account.

(b)and (c).