Exam 9: The Instruments of Trade Policy

-Refer to above figure. In the absence of trade, what is the country's producer surplus?

Economic theory in general, and trade theory in particular are replete with equivalencies. For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.

An export tariff will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A voluntary export restraint will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

A lower tariff on imported steel would most likely benefit

When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)

The change in the economic welfare of a country associated with an increase in a tariff equals

If an import-competing firm is imperfectly competitive, then under free trade an export tariff will ________ domestic market price, ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.

-Refer to above figure. In the absence of trade, how many Widgets does this country consume?

-Refer to above figure. What is the amount of government revenue resulting from imposition of the tariff?

A policy of tariff reduction in the computer industry is