All answers can be found in the text.
1.a. Name two main areas that market and price policies focus upon:
i) __________
ii) __________
b. What type of information would you collect to analyse the nature of the current policy instruments being used by a government?
i) __________
ii) __________
iii) __________
2. List some important parameters used for the quantitative assessment of the effects of policy instruments.
i) __________
ii) __________
iii) __________
iv) __________
3.a. Explain the terms "open economy", "closed economy" and "border price equivalent".
__________
b. How does the effect of producer subsidy differ in an open economy from that of a closed economy?
__________
4.a. Name the common denominator used to compare policy instruments for traceable and non-traceable commodities.
traceable commodities__________
non-traceable commodities __________
b. Define nominal rate of protection (NPR) and nominal protection coefficient for a commodity (NDC).
(NPR) =
(NPC) =
5.a. What are the two concepts used to calculate the effects of policies on the quantity (supply/demand) of a commodity? Tick (Ö) the correct answers.
i) border price equivalent
ii) price elasticities
iii) shadow price
iv) nominal rate of protection
v) domestic equilibrium price
b. Which of the following are included in determining the net welfare effect of a policy? Tick (Ö) the correct answer(s).
i) effects on producers
ii) effects on consumers
iii) effects on the government budget
iv) none of the above
v) all of the above
6. Circle T for True and F for False.
i) Government interference with prices is always for justifiable objectives.
|
T |
F |
ii) Self-reliance, rather than self sufficiency, should be the goal of a government's stability objective.
|
T |
F |
iii) A high degree of export concentration on a few commodities for foreign exchange earning is preferred to diversifying export trade.
|
T |
F |
iv) Price policies associated with the equity objective of a government focus on income redistribution between producers and consumers.
|
T |
F |
v) The appropriate policy responses to national objectives should attack the root causes of the problem rather than the symptoms.
|
T |
F |
vi) In order to avoid policy implementation problems, the number of policy measures should be kept as large as possible.
|
T |
F |
