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- Non-Tariff Trade Barrierseconomics-mcqs › non-tariff-trade-barriers
- Published
- 30 May 2019
- Last updated
- 28 May 2026
If Norway's government enforces an import quota of 800 computers to limit imports, how will the consumer surplus and producer surplus change compared to a free trade scenario? Can you determine these changes by graphing the data provided?
Multiple choice question for Non-Tariff Trade Barriers. Select an option, then review the explanation below.
Explanation
When an import quota of 800 computers is set, consumers face higher prices and reduced availability, leading to a decline in consumer surplus. Meanwhile, domestic producers benefit from reduced competition, resulting in an increase in producer surplus.
More Non-Tariff Trade Barriers MCQs
Practice related questions from the same subject.
- 1.Which U.S. company would be most affected by Brazil selling steel at below-market prices in the American market?
- 2.Which type of quota limits the quantity of goods that can be imported annually without restricting the source country or the authorized importers?
- 3.Based on the cost-based definition, dumping happens when a company exports a product at a price lower than which of the following?
- 4.Which type of dumping is associated with the highest possible net welfare loss for the importing country?
- 5.Which policy restricts outsourcing by mandating that a certain portion of a product's value be manufactured within the country to qualify for sale in the domestic market?