Trade Regulations And Industrial Policies

PPSCFPSCNTSPakistan govt jobs
Subject
Trade Regulations And Industrial Policieseconomics-mcqs › trade-regulations-and-industrial-policies
Published
27 May 2019
Last updated
28 May 2026

Browse all Trade Regulations And Industrial Policies MCQs

In 1980, the United States enforced export limits on grain shipments to the Soviet Union as a reaction to its military invasion of Afghanistan. If other countries do not boost their grain exports to the Soviets, which of the following outcomes is least likely to happen?

Multiple choice question for Trade Regulations And Industrial Policies. Select an option, then review the explanation below.

Choose the correct answer

Explanation

When the U.S. restricts grain exports to the Soviet Union, and no other nations compensate by increasing their exports, grain supply to the Soviets decreases, causing prices there to rise and reducing consumer surplus. U.S. producers would see a drop in export revenues due to lower sales. However, grain prices in the United States are unlikely to rise because the export quota reduces demand abroad, easing pressure on domestic prices.

Practice related questions from the same subject.

  1. 1.Which theory proposes that governments can help local firms earn economic profits by competing against foreign rivals?
  2. 2.What is the primary impact of the most favored nation (MFN) clause in international trade?
  3. 3.What is the effect of implementing antidumping tariffs on imported goods?
  4. 4.Which statement accurately describes the situation regarding dumping?
  5. 5.Which type of protection, including measures like the escape clause, offers temporary relief to local industries challenged by fairly traded imports?

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.