A reduction in the quotas on imported goods will raise the price of shoes by decreasing supply.
- True
- False
Subsidies can be classed as a form of regressive taxation.
- True
- False
A reduction in import quotas will increase the level of protection in the economy.
- True
- False
The imposition of a subsidy by a foreign government will shift the domestic supply curve for a commodity to the right.
- True
- False
The WTO advocates increasing tariffs and other barriers to free trade.
- True
- False
The national defence argument is a political and social argument and has no economic basis.
- True
- False
Dumping refers to the practice of foreign firms selling their procucts below costs on domestic markets.
- True
- False
Subsidies are part of the government's expenditure and are reviewed in the federal budget each year.
- True
- False
Infant industries in Australia are often protected by embargoes.
- True
- False
The main difference between a quota and a tariff is that a quota does not raise any revenue for the government.
- True
- False