Trade Policies For the Developing Nations
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- Trade Policies For the Developing Nationseconomics-mcqs › trade-policies-for-the-developing-nations
- Published
- 27 May 2019
- Last updated
- 28 May 2026
Which characteristic makes a commodity suitable for forming an effective export cartel?
Multiple choice question for Trade Policies For the Developing Nations. Select an option, then review the explanation below.
Explanation
For an export cartel to successfully control prices and output, the commodity involved should have inelastic demand, meaning consumers do not significantly reduce quantity demanded when prices rise. Therefore, a low price elasticity of demand is essential. Other factors such as being manufactured or primary goods, or supply elasticity, are less critical for cartel effectiveness.
More Trade Policies For the Developing Nations MCQs
Practice related questions from the same subject.
- 1.If firms form a cartel and coordinate their production, what is the optimal total output for the cartel, the corresponding market price, and the resulting total profit?
- 2.Compared to wealthy developed countries, do less developed nations generally apply __________ tariffs on imported goods?
- 3.What has been a notable reaction to China's membership in the World Trade Organization?
- 4.Which concept explains how nations advance technologically by emulating the development paths of more advanced countries?
- 5.Why might developing nations that focus their production on agricultural goods or raw materials experience a long-term decline in their terms of trade on the global market?