Multiple Choice Questions and Answers (MCQs) on Trade Barriers in International Trade For Civil Services
Question 1 : Ad valorem tax is based on:
a) Income
b) Real value of goods
c) Money value of goods
d) Volume of goods
Answer : c
Question 2 : Consider the following statements:
- Infant industry argument is advocated in support of protectionism in international trade.
- Infant industries require time to undergo the process of learning-by-doing to become competitive in the long run.
Which of the statements given above is/are correct ?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer : c
Question 3 : Which of the following is no an example of sanitary and phyto-sanitary barrier to trade?
a) Level of pesticide residue in agricultural produce
b) Possibility of imported food causing disease in local population
c) Addictive nature of a beverage
d) None of the above
Answer : d
Question 4 : Price discrimination may be possible when
- The nature of the commodity or service is such that there is no possibility of transference from one market to other.
- The markets are separated by large distance or traffic barriers.
- Several groups of buyers require the same service from clearly differentiated commodities.
- Buyers are well informed and rational
Which of the statements given above are correct ?
a) 1 and 2 only
b) 1,3, and 4
c) 2 and 3 only
d) 1, 2, and 3
Answer : d
Question 5 : With reference to import tariffs, consider the following statements:
- Domestic consumers benefit from the imposition of import tariffs.
- Imposition of tariffs on imported products increase the level of competition in the economy.
Which of the statements given above is/are correct ?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
Answer : d