McqMate
Chapters
1. |
Adam Smith favoured |
A. | Free trade among nations |
B. | Regulation of trade among nations |
C. | Closed economies |
D. | None of the above |
Answer» A. Free trade among nations |
2. |
Which of the following is the cause of international trade as per Heckscher-Ohlin trade theory? |
A. | Difference in factor availability |
B. | Difference in cost of production |
C. | Difference in trade |
D. | Difference in currency system |
Answer» A. Difference in factor availability |
3. |
The theory of comparative advantage in international trade was propounded by |
A. | Kindleberger |
B. | Adam Smith |
C. | David Ricardo |
D. | J.S. Mill |
Answer» C. David Ricardo |
4. |
According to Ohlin, the comparative cost differences arise because of |
A. | Labour cost differences |
B. | Factor endowment differences |
C. | Exchange rate differences |
D. | None of the above |
Answer» B. Factor endowment differences |
5. |
Adam Smith’s theory of international trade is based on |
A. | Absolute differences in costs |
B. | Homogeneity of labour |
C. | Differences of exchange ratios |
D. | Mobility of factors of production between countires |
Answer» A. Absolute differences in costs |
6. |
According to comparative advantage theory |
A. | Capital is the only factor of production |
B. | Labour is the only factor of production |
C. | Both capital and labour are factors of production |
D. | None of the above |
Answer» B. Labour is the only factor of production |
7. |
Heckscher-Ohlin theory of trade is based on |
A. | Two-by-two-by-two model |
B. | Three-by-three-by-three model |
C. | Four-by-four-by-four model |
D. | All of the above |
Answer» A. Two-by-two-by-two model |
8. |
In Ricardian theory of international trade, the only factor of production is |
A. | Land |
B. | Labour |
C. | Capital |
D. | All of the above |
Answer» B. Labour |
9. |
The Absolute Advantage theory of international trade was propounded by |
A. | Adam Smith |
B. | David Ricardo |
C. | Alfred Marshall |
D. | Lionel Robbins |
Answer» A. Adam Smith |
10. |
Haberler’s Opportunity cost theory explains the doctrine of comparative cost in terms of |
A. | The saving’s curve |
B. | The consumption curve |
C. | The substitution curve |
D. | The supply curve |
Answer» C. The substitution curve |
11. |
According to the Heckscher-Ohlin theory of trade, the most important cause of difference in relative commodity prices and trade between nations is a difference in |
A. | Factor endowment |
B. | Tastes |
C. | Demand conditions |
D. | All of the above |
Answer» A. Factor endowment |
12. |
Under constant opportunity cost, the production possibility curve is |
A. | Convex to the origin |
B. | Straight line |
C. | Concave to the origin |
D. | Upward sloping |
Answer» B. Straight line |
13. |
According to the theory of comparative advantage, countries gain from trade, because |
A. | Trade makes firms more competitive, reducing their market power |
B. | Every country has an absolute advantage in producing something |
C. | World output can rise when each country specializes in what it does relatively best |
D. | None of the above |
Answer» C. World output can rise when each country specializes in what it does relatively best |
14. |
Among the difference between inter-regional and international trade, the reason for international factor immobility includes |
A. | Difference in languages |
B. | Difference in occupational skills |
C. | Restrictions imposed by foreign country on labour immigration |
D. | All of the above |
Answer» D. All of the above |
15. |
According to Adam Smith, free trade is the result of |
A. | Division of labour and specialisation both at the national and international level |
B. | Specialisation only at the national level |
C. | Division of labour and specialisation at the national level only |
D. | Division of labour only at the international level |
Answer» A. Division of labour and specialisation both at the national and international level |
16. |
According to Ricardo, trade is possible between two countries when |
A. | One country has absolute advantage in production of both commodities |
B. | One country has an absolute advantage for production of both commodities but comparative advantage in the production of one commodity than the other country |
C. | One country does not have any advantage in the production of both commodities |
D. | A country does not have any line of production |
Answer» B. One country has an absolute advantage for production of both commodities but comparative advantage in the production of one commodity than the other country |
17. |
David Ricardo believed that the international trade is governed by |
A. | Absolute cost advantage only |
B. | Absolute cost and comparative cost advantage |
C. | Comparative cost advantage |
D. | Mobility of factors |
Answer» C. Comparative cost advantage |
18. |
The basics and gains from international trade under the theory of opportunity cost is determined by |
A. | Homogeneity of labours |
B. | The shape of the substitution curve or production possibility curve under different cost conditions |
C. | Imperfect competition in factor and commodity markets |
D. | Change in technology |
Answer» B. The shape of the substitution curve or production possibility curve under different cost conditions |
19. |
The production possibility curve under increasing opportunity costs is concave to the origin because |
A. | The opportunity cost of leaving a unit of one commodity to have an additional unit of the other is constant |
B. | Each country completely specializes in the production of only one commodity after trade |
C. | They are the same at all points |
D. | When a country in the production of one commodity in which it has comparative advantage, its opportunity costs increases |
Answer» D. When a country in the production of one commodity in which it has comparative advantage, its opportunity costs increases |
20. |
The importance of international trade includes |
A. | Adverse terms of trade |
B. | Lack of industrial diversification |
C. | Balance of Payments deficit |
D. | None of the above |
Answer» D. None of the above |
21. |
According to classical view, one of the main difference between inter-regional and international trade is |
A. | Factor mobility |
B. | Wage flexibility |
C. | Both (a) and (b |
D. | None of the above |
Answer» A. Factor mobility |
22. |
According to Adam Smith, diversification of labour at the international level requires the |
A. | Existence of absolute differences in costs |
B. | Existence of comparative differences in costs |
C. | Existence of least cost combination of factors |
D. | Existence of labour involved in production of a commodity |
Answer» A. Existence of absolute differences in costs |
23. |
The basic of international trade according to Ricardo is that |
A. | A country will export those commodities in which its comparative production costs are high or will import those commodities in which its comparative production costs are less |
B. | A country will import those commodities in which its comparative production cost are the same with other countries |
C. | A country will export those commodities in which its comparative production costs are less or will import those commodities in which its comparative production costs are high |
D. | A country will export those commodities in which its comparative production |
Answer» C. A country will export those commodities in which its comparative production costs are less or will import those commodities in which its comparative production costs are high |
24. |
According to physical criterion of the H-O theory of trade, a country is said to be relatively capital abundant if and only if |
A. | A country is having capital relatively cheap and labour relative costly |
B. | A country is endowed with a higher proportion of capital to labour than the other country |
C. | A country is having labour relatively cheap and capital relatively costly |
D. | A country is endowed with a higher proportion of labour to capital than the other country |
Answer» B. A country is endowed with a higher proportion of capital to labour than the other country |
25. |
The price criterion if the H-O theory of trade lays down that |
A. | A country having labour relatively cheap and capital relatively costly is capitalabundant |
B. | A country having capital relatively cheap and labour relatively costly is labourabundant |
C. | A country having both capital and labour cheap is capital-abundant |
D. | A country having capital relatively cheap and labour relatively costly is capital abundant |
Answer» D. A country having capital relatively cheap and labour relatively costly is capital abundant |
26. |
The main reason for different nations to enter into trade is that |
A. | Every nation can produce by itself all the commodities and services required by its citizens/people |
B. | Some nations are capable to produce all the goods and services required by its people |
C. | No country has the capacity to produce all the goods and services required by its citizens/people |
D. | None of the above |
Answer» C. No country has the capacity to produce all the goods and services required by its citizens/people |
27. |
According to the absolute differences in cost theory of trade |
A. | No country should specialize in the production of any commodity |
B. | Every country should specialize in the production of commodities which it can produce more cheaply than other countries and exchange it for commodities which are cheaper in other countries |
C. | Every country should specialize in production of goods which it can produce at higher cost than other countries and exchange it for commodities which are costlier than other countries |
D. | All of the above |
Answer» B. Every country should specialize in the production of commodities which it can produce more cheaply than other countries and exchange it for commodities which are cheaper in other countries |
28. |
International trade refers to |
A. | Domestic trade |
B. | Inter-regional trade |
C. | Trade between two nations or countries |
D. | Internal trade |
Answer» C. Trade between two nations or countries |
29. |
The classical theory of international trade is based on |
A. | Labour theory of value |
B. | Less than full employment |
C. | Exchange rate differences |
D. | None of the above |
Answer» A. Labour theory of value |
30. |
The necessity of absolute differences in costs of international trade is associated with |
A. | Comparative advantage theory |
B. | Opportunity Cost theory |
C. | Absolute advantage theory |
D. | Theory of Reciprocal Demand |
Answer» C. Absolute advantage theory |
31. |
The opportunity cost theory considers |
A. | Labour as the only factor of production |
B. | Capital as the only factor of production |
C. | Both labour and capital |
D. | Land, labour and capital |
Answer» C. Both labour and capital |
32. |
The Comparative theory of international trade is based on |
A. | Constant costs |
B. | Variable costs |
C. | Increasing costs |
D. | Decreasing costs |
Answer» A. Constant costs |
33. |
The H-O theory of international trade was propounded by Ohlin in |
A. | 1932 |
B. | 1933 |
C. | 1934 |
D. | 1935 |
Answer» B. 1933 |
34. |
Community indifference curves have the same characteristics as |
A. | Transformation curve |
B. | Offer curve |
C. | Indifference curve |
D. | Production possibility curve |
Answer» C. Indifference curve |
35. |
The factor price ratio(PC/PL)A < (PC/PL)B of countries A & B implies |
A. | Country A is abundant in labour |
B. | Country B is abundant in capital |
C. | Country B is abundant in labour |
D. | Country A is abundant in capital |
Answer» D. Country A is abundant in capital |
36. |
The H-O theory assumed the prevalence of |
A. | Monopolistic forms of market |
B. | Perfect competition |
C. | Oligopolistic forms of market |
D. | Monopoly |
Answer» B. Perfect competition |
37. |
The production possibility curve represents |
A. | The supply side |
B. | The demand side |
C. | Combination of four commodities |
D. | None of the above |
Answer» A. The supply side |
38. |
Relative factor abundance in H-O theory of trade can be defined in terms of |
A. | The physical & price criterion of relative factor abundance(and the price criterion of relative factor abundance |
B. | Perfect mobility of factors of production |
C. | Production governed by increasing returns to scale |
D. | Similar factor intensities |
Answer» C. Production governed by increasing returns to scale |
39. |
The slope of the production possibility curve under Opportunity costs theory is also called |
A. | The average production curve |
B. | Marginal rate of transformation |
C. | Indifference curve |
D. | Isoquant curve |
Answer» B. Marginal rate of transformation |
40. |
The term ‘factor intensity’ refers to |
A. | The relative proportion of two commodities produced in a given period |
B. | The relative amount of resources each country possesses |
C. | The relative proportion of various factors of production used to produce a commodity |
D. | None of the above |
Answer» C. The relative proportion of various factors of production used to produce a commodity |
41. |
The fundamental reason why different countries involve in transactions with one another is the |
A. | Theory of absolute differences in costs |
B. | Production of goods |
C. | Gains from trade |
D. | Supply of goods |
Answer» B. Production of goods |
42. |
If a country has favourable terms of trade, it will claim |
A. | A larger share in the distribution of gains |
B. | An equal share in the distribution of gains |
C. | A smaller share in the distribution of gains |
D. | None of the above |
Answer» A. A larger share in the distribution of gains |
43. |
The income terms of trade is |
A. | The net barter terms of trade of a country multiplied by its export volume index |
B. | The ratio between the quantities of a country’s imports and exports |
C. | The ratio between the price of a country’s export goods and import goods |
D. | None of the above |
Answer» A. The net barter terms of trade of a country multiplied by its export volume index |
44. |
Which factor does not influence terms of trade? |
A. | Devaluation |
B. | Overpopulation |
C. | Trade policy |
D. | Immigration |
Answer» D. Immigration |
45. |
Gains from trade depends on |
A. | Relative strength of elasticity of demand for export and import good |
B. | Size of the country |
C. | Change in technology |
D. | All of the above |
Answer» D. All of the above |
46. |
The principle of reciprocal demand was introduced by |
A. | J.S.Mill |
B. | Lionel Robbins |
C. | Alfred Marshall |
D. | Adam Smith |
Answer» A. J.S.Mill |
47. |
Terms of trade expresses the relationship between |
A. | Balance of payments between two countries |
B. | The export price and import price of a country |
C. | Gains and loss of a country in international trade |
D. | None of the above |
Answer» B. The export price and import price of a country |
48. |
The difference in the domestic cost ratios of producing two commodities in two countries is known as |
A. | Actual gains |
B. | Partial gains |
C. | Potential gains |
D. | Price gains |
Answer» C. Potential gains |
49. |
The two types of gains from trade are |
A. | Internal and external gains |
B. | Static and dynamic gains |
C. | Relative and reactive gains |
D. | All of the above |
Answer» B. Static and dynamic gains |
50. |
In case of Mill’s theory, where country A produces good X and country B produces good Y, if country A’s demand for product Y increases, then country A’s offer curve will |
A. | Shift to the left |
B. | Shift to the right |
C. | Shift backwards |
D. | Remain constant |
Answer» B. Shift to the right |
51. |
The difference in price ratios of two commodities in the two trading countries is |
A. | Potential gains |
B. | Partial gains |
C. | Actual gains |
D. | None of the above |
Answer» C. Actual gains |
52. |
The ratio between the quantities of a country’s imports to its exports is known as |
A. | Commodity or net barter terms of trade |
B. | Single factoral terms of trade |
C. | Gross barter terms of trade |
D. | Double factoral terms trade |
Answer» C. Gross barter terms of trade |
53. |
J.S.Mill introduced the theory of reciprocal demand to explain |
A. | Determination of factor endowments |
B. | Determination of equilibrium terms of trade |
C. | Determination of availability of resources |
D. | Determination of equilibrium in balance of payments |
Answer» B. Determination of equilibrium terms of trade |
54. |
Mill’s theory of reciprocal demand indicates a |
A. | Country’s demand for one commodity in terms of the quantities of the other country it is prepared to give up in exchange |
B. | Country’s supply of a commodity in terms of the quantities of the other country it is prepared to give up in exchange |
C. | Country’s balance of payments |
D. | Country’s labour cost |
Answer» A. Country’s demand for one commodity in terms of the quantities of the other country it is prepared to give up in exchange |
55. |
The gains from trade refers to |
A. | A duty levied on goods when they enter and leave a country’s national boundary |
B. | A tariff that maximizes a country’s welfare |
C. | Net benefits or increases in goods that a country gets by trading with other countries |
D. | The demand and supply curve of a country |
Answer» C. Net benefits or increases in goods that a country gets by trading with other countries |
56. |
The ratio between the price of a country’s export goods to its import goods is called |
A. | Income terms of trade |
B. | Gross barter terms of trade |
C. | Real cost terms of trade |
D. | Commodity or net barter terms of trade |
Answer» D. Commodity or net barter terms of trade |
57. |
An increase in the index of income terms of trade implies that |
A. | A country cannot import more goods in exchange for its exports |
B. | A country can import more goods in exchange for its exports |
C. | A country cannot export more goods in exchange for its imports |
D. | None of the above |
Answer» B. A country can import more goods in exchange for its exports |
58. |
The terms of trade refers to the rate |
A. | At which the goods of one country is exchanged for the goods of another country |
B. | At which the price of a country’s import is calculated |
C. | At which the price of a country’s export is calculated |
D. | All of the above |
Answer» A. At which the goods of one country is exchanged for the goods of another country |
59. |
The types of terms of trade does not include |
A. | Utility terms of trade |
B. | Real cost terms of trade |
C. | Productive capacity terms of trade |
D. | Double factoral terms of trade |
Answer» C. Productive capacity terms of trade |
60. |
In the modern trade theory, the gains from international trade are clearly differentiated between |
A. | The gains from exchange and the gains from specialization |
B. | The gains from exchange and income |
C. | The gains from exchange and price |
D. | All of the above |
Answer» A. The gains from exchange and the gains from specialization |
61. |
Under the gains from international trade, the gains from exchange is also known as the |
A. | Partial gains |
B. | Consumption gains |
C. | Domestic gains |
D. | Price gains |
Answer» B. Consumption gains |
62. |
In modern trade theory, the gains from specialization is also known as the |
A. | Constant gains |
B. | Consumption gains |
C. | Production gains |
D. | Internal gains |
Answer» C. Production gains |
63. |
The terms of trade of a country improves when |
A. | The import price of a country relatively rises to its export prices |
B. | The import price of a country is the same with its export prices |
C. | The export price of a country does not rise in relation to its import prices |
D. | The export price of a country relatively rises to its import prices |
Answer» D. The export price of a country relatively rises to its import prices |
64. |
When a country’s import price relatively rises to its export prices, |
A. | The terms of trade of a country remains the same |
B. | The terms of trade of a country becomes worsened |
C. | The terms of trade of a country improves |
D. | None of the above |
Answer» B. The terms of trade of a country becomes worsened |
65. |
The various methods of measuring gains from trade does not include |
A. | Haberler’s approach |
B. | Ricardo’s-Malthus approach |
C. | Modern approach |
D. | Mill’s approach |
Answer» A. Haberler’s approach |
66. |
According to Jacob Viner, the classical economists measured the gains from trade in terms of |
A. | Increase in national income |
B. | Difference in comparative costs |
C. | Terms of trade |
D. | All of the above |
Answer» D. All of the above |
67. |
The classical theorists believed that the gains from trade resulted from |
A. | Stabilisation of price level |
B. | Increased production and specialization |
C. | Exchange and specialization |
D. | Perfect competition |
Answer» B. Increased production and specialization |
68. |
The modern economists considered the gains from trade resulted from |
A. | Increased production and specialization |
B. | Increased competition |
C. | Exchange and specialization |
D. | All of the above |
Answer» C. Exchange and specialization |
69. |
The concept of single factoral terms of trade was developed by |
A. | Jacob Viner |
B. | G.S. Dorrance |
C. | G.Haberler |
D. | F.W. Taussig |
Answer» A. Jacob Viner |
70. |
Mill’s theory of reciprocal demand is based on one of the assumptions that |
A. | There is less than full employment |
B. | There is imperfect competition |
C. | The commodities are produced under the law of constant returns |
D. | There are transport costs involved |
Answer» C. The commodities are produced under the law of constant returns |
71. |
When the export prices of a country relatively rises to its import prices, its terms of trade are said to have |
A. | Deteriorated |
B. | Improved |
C. | Remain constant |
D. | None of the above |
Answer» B. Improved |
72. |
The concept of gross barter terms of trade was introduced by |
A. | Jacob Viner |
B. | Adam Smith |
C. | Lionel Robbins |
D. | F.W. Taussig |
Answer» D. F.W. Taussig |
73. |
A single factoral terms of trade shows that a country’s factoral terms of trade improve as productivity |
A. | Remains constant in its export industries |
B. | Improves in its export industries |
C. | Deteriorates in its export industries |
D. | Increases in its import industries |
Answer» B. Improves in its export industries |
74. |
The concept of commodity or net barter terms of trade has been used by economists to measure |
A. | The gains from domestic trade |
B. | The gains from internal trade |
C. | The gains from international trade |
D. | The gains from prices |
Answer» C. The gains from international trade |
75. |
The term ‘terms of trade’ between two countries refers to |
A. | The barter terms of trade |
B. | The quantity of exports |
C. | Both (a) and (b |
D. | The price |
Answer» A. The barter terms of trade |
76. |
The actual exchange ratio between two countries will depend upon the |
A. | Supply |
B. | Price |
C. | Reciprocal demand |
D. | All of the above |
Answer» C. Reciprocal demand |
77. |
In world markets, the actual gain is always less than the potential gain since there is always |
A. | Perfect completion |
B. | Imperfect completion |
C. | Stability |
D. | None of the above |
Answer» B. Imperfect completion |
78. |
The theory of gains from trade was at the core of the |
A. | Technical progress |
B. | Change in employment |
C. | Modern theory of international trade |
D. | Classical theory of international trade |
Answer» D. Classical theory of international trade |
79. |
Prof. Ronald Findlay modified Ricardo’s measure of gains from trade using |
A. | A straight line |
B. | Balance of payments |
C. | The community indifference curve |
D. | Short-term and long-term lendings and borrowings |
Answer» C. The community indifference curve |
80. |
The income terms of trade is called the |
A. | Capacity to export |
B. | Capacity to import |
C. | Capacity to change |
D. | Capacity to remain constant |
Answer» B. Capacity to import |
81. |
The tariff that maximizes a country’s welfare is called the |
A. | Double column tariff |
B. | Maximum and minimum tariff |
C. | Optimum tariff |
D. | None of the above |
Answer» C. Optimum tariff |
82. |
Ad valorem tariffs are |
A. | Duties levied per physical unit of the commodity imported |
B. | Duties levied as fixed percentage of the value of the imported commodity |
C. | Duties which tend to vary with the prices of the imported commodities |
D. | None of the above |
Answer» B. Duties levied as fixed percentage of the value of the imported commodity |
83. |
On the basis of origin and destination of goods, tariff may be classified into |
A. | Specific duties, ad valorem duties and compound duties |
B. | Single-column tariff, double-column tariff and triple column tariff |
C. | Export duties, import duties and transit duties |
D. | All of the above |
Answer» B. Single-column tariff, double-column tariff and triple column tariff |
84. |
Specific tariffs are assessed |
A. | On the value of product |
B. | On the basis of subsidies |
C. | On the basis of physical weight |
D. | On the basis rate fixed by the government |
Answer» C. On the basis of physical weight |
85. |
A quota which established thorough mutual agreements or negotiation between countries is |
A. | Allocated quota |
B. | Unilateral quota |
C. | Import-export quota |
D. | Bilateral quota |
Answer» D. Bilateral quota |
86. |
Effects of tariffs included |
A. | Income effect |
B. | Effect on demand |
C. | Effect on supply |
D. | All of the above |
Answer» A. Income effect |
87. |
When a uniform rate of duty is imposed on all similar commodities irrespective of the country from which they are imported, it is called |
A. | Single-column tariff |
B. | Protective tariff |
C. | Conventional tariff |
D. | Double-column tariff |
Answer» A. Single-column tariff |
88. |
A quota system which allows a certain specified quantity of a commodity to be imported duty free or at a low rate of import duty is |
A. | Bilateral quota |
B. | Global quota |
C. | Tariff or custom quota |
D. | Unilateral quota |
Answer» C. Tariff or custom quota |
89. |
The tariff rates which are based on trade agreements or treaties with other countries is known as |
A. | Revenue tariffs |
B. | Protective tariffs |
C. | Multiple column tariff |
D. | Conventional tariff |
Answer» D. Conventional tariff |
90. |
Which of the following is not included in the effects of quotas |
A. | Price effect |
B. | Consumption effect |
C. | Income effect |
D. | Protective effect |
Answer» C. Income effect |
91. |
imposition of a tariff improves the terms of trade of the imposing country but reduces its |
A. | Commodity prices |
B. | Volume of trade |
C. | Cost of production |
D. | None of the above |
Answer» B. Volume of trade |
92. |
A tariff results in an improvement in terms of trade on one hand and on the other hand, increases the |
A. | Demand of the commodity |
B. | Price of the commodity |
C. | Level of welfare |
D. | Gains from trade |
Answer» C. Level of welfare |
93. |
The positive effect of a tariff is, when there is an increase in the welfare of a country due to |
A. | An improvement in the terms of trade |
B. | An increase in its volume of trade |
C. | A reduction in its volume of trade |
D. | A decrease in its volume of trade |
Answer» A. An improvement in the terms of trade |
94. |
There is an improvement in the welfare of country only when the |
A. | Positive effect of a tariff is lesser than its negative effect |
B. | Positive effect is larger than its negative effect |
C. | Positive effect of a tariff is equal to its negative effect |
D. | None of the above |
Answer» B. Positive effect is larger than its negative effect |
95. |
A trade policy without tariffs and other quantitative restrictions blocking the movement of goods between countries is |
A. | Import policy |
B. | Export policy |
C. | Free trade policy |
D. | Exim policy |
Answer» C. Free trade policy |
96. |
Protection refers to a policy where |
A. | Export industries are to be protected from competition |
B. | Domestic industries are to be protected from foreign competition |
C. | Optimum utilization of resources takes place |
D. | There is optimization of consumption |
Answer» B. Domestic industries are to be protected from foreign competition |
97. |
A tax or duty levied on goods when it enters or leave the national boundary of a country is called |
A. | Tariff |
B. | Quotas |
C. | External economics |
D. | Balance of payment |
Answer» A. Tariff |
98. |
When government levies import duties which varies with prices of commodities imported , it is called |
A. | Ad valorem duty |
B. | Specific duty |
C. | Compound duty |
D. | Sliding scale duty |
Answer» D. Sliding scale duty |
99. |
Which of the following is not the effect of tariff? |
A. | Balance of payments effect |
B. | Terms of trade effect |
C. | competive effect |
D. | none of the above |
Answer» D. none of the above |
100. |
Prof. Kindleberger calls the combined protective and consumption effect as |
A. | Cost of the tariff |
B. | Trade effect |
C. | Income effect |
D. | Revenue effect |
Answer» B. Trade effect |
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