Question 1

-Refer to above figure.With free trade and no tariffs,what is the quantity of Widgets imported?

Accepted Answer

The answer of  
-Refer to above figure.With free trade...

Question 2

Some argue that tariffs always hurt the imposing country's economic welfare,and are typically designed to shift resources from one sector to another,protected or preferred one,within an economy.Find and discuss a counter example to this argument.

Accepted Answer

The optimum tariff i

Question 3

If an import-competing firm is the only domestic producer of a good,then a transition from autarky to free trade will ________ domestic price,________ producer surplus,________ consumer surplus,and ________ overall domestic national welfare.

Accepted Answer

A) increase;increase;increase;increase 
B) decrease;decrease;decrease;decrease 
C) decrease;decrease;increase;increase 
D) increase;increase;decrease;decrease 
E) increase;increase;decrease;increase 
A) increase;increase;increase;increase 
B) decrease;decrease;decrease;decrease 
C) decrease;decrease;increase;increase 
D) increase;increase;decrease;decrease 
E) increase;increase;decrease;increase

Question 4

-Refer to above figure.The loss of Consumer Surplus due to the tariff equals ________.

Accepted Answer

The answer of  
-Refer to above figure.The loss of...

Question 5

If a small country imposes a tariff,then

Accepted Answer

A) the producers must suffer a loss. 
B) the consumers must suffer a loss. 
C) the government revenue must suffer a loss. 
D) the demand curve must shift to the left. 
E) the world price on that item will shift. 
A) the producers must suffer a loss. 
B) the consumers must suffer a loss. 
C) the government revenue must suffer a loss. 
D) the demand curve must shift to the left. 
E) the world price on that item will shift.

Question 6

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.

Accepted Answer

E.g. ,during a period of price inflation

Question 7

The effective rate of protection is a weighted average of nominal tariffs and tariffs on imported inputs.It has been noted that in most industrialized countries,the nominal tariffs on raw materials or intermediate components or products are lower than on final-stage products meant for final markets.Why would countries design their tariff structures in this manner? Who tends to be helped,and who is harmed by this cascading tariff structure?

Accepted Answer

The cascading tariff structure is probab

Question 8

An export subsidy is

Accepted Answer

A) a payment to a firm or individual that ships a good abroad. 
B) a fee that is charged to a country that ships goods to the U.S. 
C) a payment made to a foreign government in return for preferential trade treatment. 
D) illegal in the U.S.but is fairly common in the rest of the world. 
E) a limit on the quantity of a good or service that can be sold abroad. 
A) a payment to a firm or individual that ships a good abroad. 
B) a fee that is charged to a country that ships goods to the U.S. 
C) a payment made to a foreign government in return for preferential trade treatment. 
D) illegal in the U.S.but is fairly common in the rest of the world. 
E) a limit on the quantity of a good or service that can be sold abroad.

Question 9

Ad valorem tariffs are

Accepted Answer

A) import taxes stated in ads in industry publications. 
B) import taxes calculated as a fixed charge for each unit of imported goods. 
C) import taxes calculated as a fraction of the value of the imported goods. 
D) the same as import quotas. 
E) import taxes calculated solely on the origin country. 
A) import taxes stated in ads in industry publications. 
B) import taxes calculated as a fixed charge for each unit of imported goods. 
C) import taxes calculated as a fraction of the value of the imported goods. 
D) the same as import quotas. 
E) import taxes calculated solely on the origin country.

Question 10

The excess supply curve of a product we (H)import from foreign countries (F)increases as

Accepted Answer

A) excess demand of country H increases. 
B) excess demand of country F increases. 
C) excess supply of country H increases. 
D) excess supply of country F increases. 
E) excess supply of country F decreases. 
A) excess demand of country H increases. 
B) excess demand of country F increases. 
C) excess supply of country H increases. 
D) excess supply of country F increases. 
E) excess supply of country F decreases.

Question 11

If a good is imported into (large)country H from country F,then the imposition of a tariff in country H

Accepted Answer

A) raises the price of the good in both countries (the "Law of One Price"). 
B) raises the price in country H and cannot affect its price in country F. 
C) lowers the price of the good in both countries. 
D) lowers the price of the good in H and could raise it in F. 
E) raises the price of the good in H and lowers it in F. 
A) raises the price of the good in both countries (the "Law of One Price"). 
B) raises the price in country H and cannot affect its price in country F. 
C) lowers the price of the good in both countries. 
D) lowers the price of the good in H and could raise it in F. 
E) raises the price of the good in H and lowers it in F.

Question 12

The principle benefit of tariff protection goes to

Accepted Answer

A) domestic consumers of the good produced. 
B) foreign consumers of the good produced. 
C) domestic producers of the good produced. 
D) foreign producers of the good produced. 
E) the domestic government. 
A) domestic consumers of the good produced. 
B) foreign consumers of the good produced. 
C) domestic producers of the good produced. 
D) foreign producers of the good produced. 
E) the domestic government.

Question 13

An export subsidy differs from a tariff in each of the following ways EXCEPT

Accepted Answer

A) a tariff generates revenue. 
B) a tariff is applied to imports. 
C) a tariff results in an efficiency loss. 
D) a tariff is a tax. 
E) a tariff discourages imports. 
A) a tariff generates revenue. 
B) a tariff is applied to imports. 
C) a tariff results in an efficiency loss. 
D) a tariff is a tax. 
E) a tariff discourages imports.

Question 14

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

Accepted Answer

The answer of  
-Refer to above figure.What is the...

Question 15

-Refer to above figure.Given a tariff of $3 per unit,what is the country's consumer surplus?

Accepted Answer

The answer of  
-Refer to above figure.Given a tariff...

Question 16

The effective rate of protection measures

Accepted Answer

A) the "true" ad valorem value of a tariff. 
B) the quota equivalent value of a tariff. 
C) the efficiency with which the tariff is collected at the customhouse. 
D) the protection given by the tariff to domestic value added. 
E) the difference between domestic and foreign prices of the import. 
A) the "true" ad valorem value of a tariff. 
B) the quota equivalent value of a tariff. 
C) the efficiency with which the tariff is collected at the customhouse. 
D) the protection given by the tariff to domestic value added. 
E) the difference between domestic and foreign prices of the import.

Question 17

The main redistribution effect of a tariff is the transfer of income from

Accepted Answer

A) domestic producers to domestic buyers. 
B) domestic buyers to domestic producers. 
C) domestic producers to domestic government. 
D) domestic government to domestic consumers. 
E) foreign producers to domestic consumers. 
A) domestic producers to domestic buyers. 
B) domestic buyers to domestic producers. 
C) domestic producers to domestic government. 
D) domestic government to domestic consumers. 
E) foreign producers to domestic consumers.

Question 18

In an inflationary environment,then over time

Accepted Answer

A) a specific tariff will tend to raise more revenue than an ad valorem tariff. 
B) an ad valorem tariff will tend to raise more revenue than a specific tariff. 
C) an optimum tariff will tend to raise more revenue than an escalating tariff. 
D) a tariff quota will tend to raise more revenue than a specific tariff. 
E) an import quota would raise more revenue than a specific tariff. 
A) a specific tariff will tend to raise more revenue than an ad valorem tariff. 
B) an ad valorem tariff will tend to raise more revenue than a specific tariff. 
C) an optimum tariff will tend to raise more revenue than an escalating tariff. 
D) a tariff quota will tend to raise more revenue than a specific tariff. 
E) an import quota would raise more revenue than a specific tariff.

Question 19

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

Accepted Answer

The answer of  
-Refer to above figure.In the absence...

Question 20

-Refer to above figure.With a specific tariff of $3 per unit,what is the quantity of Widgets consumed domestically?

Accepted Answer

The answer of  
-Refer to above figure.With a specific...

-Refer to above figure.With free trade and no tariffs,what is the quantity of Widgets imported?

Some argue that tariffs always hurt the imposing country's economic welfare,and are typically designed to shift resources from one sector to another,protected or preferred one,within an economy.Find and discuss a counter example to this argument.

If an import-competing firm is the only domestic producer of a good,then a transition from autarky to free trade will domestic price, producer surplus, consumer surplus,and overall domestic national welfare.

-Refer to above figure.The loss of Consumer Surplus due to the tariff equals ________.

If a small country imposes a tariff,then

An export subsidy is

Ad valorem tariffs are

The excess supply curve of a product we (H)import from foreign countries (F)increases as

If a good is imported into (large)country H from country F,then the imposition of a tariff in country H

The principle benefit of tariff protection goes to

An export subsidy differs from a tariff in each of the following ways EXCEPT

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

-Refer to above figure.Given a tariff of $3 per unit,what is the country's consumer surplus?

The effective rate of protection measures

The main redistribution effect of a tariff is the transfer of income from

In an inflationary environment,then over time

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

-Refer to above figure.With a specific tariff of $3 per unit,what is the quantity of Widgets consumed domestically?

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, outsourcing, and Multinational Enterprises

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, crisis, and Reform

Filters

Exam 9: The Instruments of Trade Policy

-Refer to above figure.With free trade and no tariffs,what is the quantity of Widgets imported?

Some argue that tariffs always hurt the imposing country's economic welfare,and are typically designed to shift resources from one sector to another,protected or preferred one,within an economy.Find and discuss a counter example to this argument.

If an import-competing firm is the only domestic producer of a good,then a transition from autarky to free trade will ________ domestic price,________ producer surplus,________ consumer surplus,and ________ overall domestic national welfare.

-Refer to above figure.The loss of Consumer Surplus due to the tariff equals ________.

If a small country imposes a tariff,then

An export subsidy is

Ad valorem tariffs are

The excess supply curve of a product we (H)import from foreign countries (F)increases as

If a good is imported into (large)country H from country F,then the imposition of a tariff in country H

The principle benefit of tariff protection goes to

An export subsidy differs from a tariff in each of the following ways EXCEPT

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

-Refer to above figure.Given a tariff of $3 per unit,what is the country's consumer surplus?

The effective rate of protection measures

The main redistribution effect of a tariff is the transfer of income from

In an inflationary environment,then over time

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

-Refer to above figure.With a specific tariff of $3 per unit,what is the quantity of Widgets consumed domestically?

Introduction

World Trade: an Overview

Labor Productivity and Comparative Advantage: the Ricardian Model

Specific Factors and Income Distribution

Resources and Trade: the Heckscher-Ohlin Model

The Standard Trade Model

External Economies of Scale and the International Location of Production

Firms in the Global Economy: Export Decisions, outsourcing, and Multinational Enterprises

The Political Economy of Trade Policy

Trade Policy in Developing Countries

Controversies in Trade Policy

National Income Accounting and the Balance of Payments

Exchange Rates and the Foreign Exchange Market: an Asset Approach

Money, interest Rates, and Exchange Rates

Price Levels and the Exchange Rate in the Long Run

Output and the Exchange Rate in the Short Run

Fixed Exchange Rates and Foreign Exchange Intervention

International Monetary Systems: an Historical Overview

Financial Globalization: Opportunity and Crisis

Optimum Currency Areas and the Euro

Developing Countries: Growth, crisis, and Reform

Filters

If an import-competing firm is the only domestic producer of a good,then a transition from autarky to free trade will domestic price, producer surplus, consumer surplus,and overall domestic national welfare.