2. Import substitution policies make use ofA) tariffs that discourage goods from entering a country.B) quotas applied to goods that are shipped abroad.C) production subsidies granted to industries with comparative advantage.D) tax breaks granted to industries with comparative advantage.E) production facilities provided by industrialized countries

When a country restricts imports of competitive products in order to allow smaller, less competitive domestic firms to grow and prosper, it is called:Question 3Answera.import substitution policy.b.tariffs.c.non-tariffs.d.none of them

3. The disappointment with import-substitution policies is in part becauseA) of the rapid and continuous growth record of South American countries.B) many countries pursuing this strategy experienced stagnation in their growth.C) this policy is inconsistent with sophisticated economic growth models.D) this policy tended to create world-class industrial competitors.E) of the financial investment lost by the U.S.

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition

Import tariffs:Question 1Select one:a.Are generally pro-consumer and anti-producer.b.Reduce the overall efficiency of the world economy.c.Create efficient utilization of resources.d.Reduce the price of foreign goods.

Subsidies are:Question 47Select one:a.when governments tax one industry more than other industries.b.when governments have a negative trade balance.c.when governments provide financial support to an industry they want to protect.d.when governments place limits on the the quantities of imports.e.when governments place a tax on imports.