PPSCFPSCNTSPakistan govt jobs
- Subject
- Non-Tariff Trade Barrierseconomics-mcqs › non-tariff-trade-barriers
- Published
- 30 May 2019
- Last updated
- 28 May 2026
What is the impact of a production subsidy provided to a producer competing with imported goods?
Multiple choice question for Non-Tariff Trade Barriers. Select an option, then review the explanation below.
Explanation
A production subsidy to import-competing producers causes deadweight loss primarily through its protective effect, unlike tariffs or quotas which may cause both consumption and protective effects. Therefore, the deadweight loss is associated only with protection, not consumption.
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?