Suppose that the offshore assembly provisions (OAP) of the United States are granted to finished computers that are imported and produced domestically This policy will tend to ?
Correct answer: D. Increase the production of computer components in the United States
- A. cause foreign assemblers of computers to use more computer components that are supplied by countries other than the United States
- B. Increase the Price of computers to consumers in the United States
- C. Increase the Production of computers in the United States
- D. Increase the production of computer components in the United States
Explanation
Offshore assembly provisions reduce or remove duties on U.S.-made components assembled abroad and reimported, making those components more attractive to foreign assemblers. This tends to expand demand for, and production of, computer components in the United States.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
If no imported inputs (hard-disk drive) go into the domestic production of a final product (desktop computer) then the ?
The national security argument for protection is more likely to be valid when ?
A tax of 15 percent per imported item would be an example of a (an) ?
A tariff ______ increase a country overall welfare?
If a country an imposes an import tariff, its welfare can improve if ?
If a small country imposes a tariff on an imported good, its terms of trade will ?