Question 1

A policy of tariff reduction in the computer industry is

Accepted Answer

A) in the interest of the United States as a whole and in the interest of computer producing regions of the country. 
B) in the interest of the United States as a whole but not in the interest of computer producing regions of the country. 
C) not in the interest of the United States as a whole but in the interests of computer producing regions of the country. 
D) not in the interest of the United States as a whole but in the interests of foreign computer producers. 
E) not in the interest of the United States as a whole and not in the interests of computer consumers. 
A) in the interest of the United States as a whole and in the interest of computer producing regions of the country. 
B) in the interest of the United States as a whole but not in the interest of computer producing regions of the country. 
C) not in the interest of the United States as a whole but in the interests of computer producing regions of the country. 
D) not in the interest of the United States as a whole but in the interests of foreign computer producers. 
E) not in the interest of the United States as a whole and not in the interests of computer consumers.

Question 2

An important difference between tariffs and quotas is that tariffs

Accepted Answer

A) help domestic producers. 
B) raise the price of the good. 
C) stimulate international trade. 
D) generate tax revenue for the government. 
E) are paid by foreign producers. 
A) help domestic producers. 
B) raise the price of the good. 
C) stimulate international trade. 
D) generate tax revenue for the government. 
E) are paid by foreign producers.

Question 3

A specific tariff provides home producers more protection when

Accepted Answer

A) it is applied to a commodity with many grade variations. 
B) the home market buys cheaper products rather than expensive products. 
C) the home supply outnumbers the foreign imports. 
D) the home demand for a good is elastic with respect to price changes. 
E) it is levied on manufactured goods rather than primary products. 
A) it is applied to a commodity with many grade variations. 
B) the home market buys cheaper products rather than expensive products. 
C) the home supply outnumbers the foreign imports. 
D) the home demand for a good is elastic with respect to price changes. 
E) it is levied on manufactured goods rather than primary products.

Question 4

Suppose an import- competing firm is imperfectly competitive.Replacement of an export tariff with an import quota that yields the same level of imports will market price, producer surplus,consumer surplus,_ government revenue,and overall domestic national welfare.

Accepted Answer

A) have no effect on; have no effect on; have no effect on; decrease; decrease 
B) increase; increase; increase; decrease; have an ambiguous effect on 
C) increase; have no effect on; decrease; decrease; increase 
D) increase; increase; decrease; decrease; decrease 
E) decrease; decrease; increase; decrease; increase 
A) have no effect on; have no effect on; have no effect on; decrease; decrease 
B) increase; increase; increase; decrease; have an ambiguous effect on 
C) increase; have no effect on; decrease; decrease; increase 
D) increase; increase; decrease; decrease; decrease 
E) decrease; decrease; increase; decrease; increase

Question 5

The effective rate of protection measures

Accepted Answer

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

Question 6

If a small country imposes a tariff,then

Accepted Answer

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

Question 7

A tax of 20 percent per unit of imported garlic is an example of a(n)

Accepted Answer

A) specific tariff. 
B) ad valorem tariff. 
C) nominal tariff. 
D) a disadvantageous tariff 
E) effective protection tariff. 
A) specific tariff. 
B) ad valorem tariff. 
C) nominal tariff. 
D) a disadvantageous tariff 
E) effective protection tariff.

Question 8

Tariff rates on products imported into the U.S.

Accepted Answer

A) were prohibited by the Constitution. 
B) were the government's main source of income in 2006. 
C) reached an all time high in 2002. 
D) have risen steadily since 1920. 
E) have dropped substantially over the past 50 years. 
A) were prohibited by the Constitution. 
B) were the government's main source of income in 2006. 
C) reached an all time high in 2002. 
D) have risen steadily since 1920. 
E) have dropped substantially over the past 50 years.

Question 9

In the exporting country,an export subsidy will

Accepted Answer

A) help consumers and raise the overall economic welfare of the exporting country. 
B) hurt consumers and lower the overall economic welfare of the exporting country. 
C) help consumers and have no effect on the economic welfare of the exporting country. 
D) help consumers but lower economic welfare of the exporting country. 
E) hurt consumers but raise the overall economic welfare of the exporting country. 
A) help consumers and raise the overall economic welfare of the exporting country. 
B) hurt consumers and lower the overall economic welfare of the exporting country. 
C) help consumers and have no effect on the economic welfare of the exporting country. 
D) help consumers but lower economic welfare of the exporting country. 
E) hurt consumers but raise the overall economic welfare of the exporting country.

Question 10

Ad valorem tariffs are

Accepted Answer

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

Question 11

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

Accepted Answer

A) increase; decrease; increase; have an ambiguous effect on 
B) increase; decrease; decrease; decrease 
C) increase; decrease; have no effect on; have an ambiguous effect on 
D) increase; decrease; have no effect on; decrease 
E) increase; increase; decrease; have an ambiguous effect on 
A) increase; decrease; increase; have an ambiguous effect on 
B) increase; decrease; decrease; decrease 
C) increase; decrease; have no effect on; have an ambiguous effect on 
D) increase; decrease; have no effect on; decrease 
E) increase; increase; decrease; have an ambiguous effect on

Question 12

The U.S.sugar quota

Accepted Answer

A) generates government revenue. 
B) does not result in an efficiency loss. 
C) results in benefits to sugar producers that exceed the cost to consumers. 
D) results in costs to consumers that exceed the benefits to sugar producers. 
E) results in net welfare benefits to the U.S.economy. 
A) generates government revenue. 
B) does not result in an efficiency loss. 
C) results in benefits to sugar producers that exceed the cost to consumers. 
D) results in costs to consumers that exceed the benefits to sugar producers. 
E) results in net welfare benefits to the U.S.economy.

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

The most vocal political pressure for tariffs is generally made by

Accepted Answer

A) consumers lobbying for lower import tariffs. 
B) producers lobbying for import tariffs. 
C) consumers lobbying for import tariffs. 
D) producers lobbying for export tariffs. 
E) consumers lobbying for export tariffs. 
A) consumers lobbying for lower import tariffs. 
B) producers lobbying for import tariffs. 
C) consumers lobbying for import tariffs. 
D) producers lobbying for export tariffs. 
E) consumers lobbying for export tariffs.

Question 16

Specific tariffs are

Accepted Answer

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

Question 17

The European Union's Common Agricultural Policy (CAP)is,in effect

Accepted Answer

A) a tariff imposed on agricultural imports. 
B) a tariff imposed on agricultural exports. 
C) a subsidy that increases the cost of agricultural exports. 
D) a quota that limits production of agricultural goods by EU nations. 
E) a subsidy that reduces the cost of agricultural exports. 
A) a tariff imposed on agricultural imports. 
B) a tariff imposed on agricultural exports. 
C) a subsidy that increases the cost of agricultural exports. 
D) a quota that limits production of agricultural goods by EU nations. 
E) a subsidy that reduces the cost of agricultural exports.

Question 18

If the tariff on computers is not changed,but domestic computer producers shift from domestically produced semiconductors to imported components,then the effective rate of protection in the computer industry will

Accepted Answer

A) decrease 
B) no longer apply. 
C) remain the same. 
D) increase. 
E) depend on whether computers are PCs or "Supercomputers." 
A) decrease 
B) no longer apply. 
C) remain the same. 
D) increase. 
E) depend on whether computers are PCs or "Supercomputers."

Question 19

An import quota is similar to a _ in its effect on imports,EXCEPT that an import quota .

Accepted Answer

A) tariff; generates revenue 
B) subsidy; does not generate revenue 
C) subsidy; generates revenue 
D) tariff; does not result in an efficiency loss. 
E) tariff; does not generate revenue 
A) tariff; generates revenue 
B) subsidy; does not generate revenue 
C) subsidy; generates revenue 
D) tariff; does not result in an efficiency loss. 
E) tariff; does not generate revenue

Question 20

Throughout the post- World War II era,the importance of tariffs as a trade barrier has

Accepted Answer

A) increased. 
B) decreased. 
C) fluctuated wildly. 
D) remained the same. 
E) demonstrated a classic random walk with a mean- reversion tendency. 
A) increased. 
B) decreased. 
C) fluctuated wildly. 
D) remained the same. 
E) demonstrated a classic random walk with a mean- reversion tendency.

A policy of tariff reduction in the computer industry is

An important difference between tariffs and quotas is that tariffs

A specific tariff provides home producers more protection when

Suppose an import- competing firm is imperfectly competitive.Replacement of an export tariff with an import quota that yields the same level of imports will market price, producer surplus,consumer surplus,_ government revenue,and overall domestic national welfare.

The effective rate of protection measures

If a small country imposes a tariff,then

A tax of 20 percent per unit of imported garlic is an example of a(n)

Tariff rates on products imported into the U.S.

In the exporting country,an export subsidy will

Ad valorem tariffs are

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

The U.S.sugar quota

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

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

The most vocal political pressure for tariffs is generally made by

Specific tariffs are

The European Union's Common Agricultural Policy (CAP)is,in effect

If the tariff on computers is not changed,but domestic computer producers shift from domestically produced semiconductors to imported components,then the effective rate of protection in the computer industry will

An import quota is similar to a _ in its effect on imports,EXCEPT that an import quota .

Throughout the post- World War II era,the importance of tariffs as a trade barrier has

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

Filters

Exam 9: The Instruments of Trade Policy

A policy of tariff reduction in the computer industry is

An important difference between tariffs and quotas is that tariffs

A specific tariff provides home producers more protection when

Suppose an import- competing firm is imperfectly competitive.Replacement of an export tariff with an import quota that yields the same level of imports will market price, producer surplus,consumer surplus,_ government revenue,and overall domestic national welfare.

The effective rate of protection measures

If a small country imposes a tariff,then

A tax of 20 percent per unit of imported garlic is an example of a(n)

Tariff rates on products imported into the U.S.

In the exporting country,an export subsidy will

Ad valorem tariffs are

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

The U.S.sugar quota

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

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

The most vocal political pressure for tariffs is generally made by

Specific tariffs are

The European Union's Common Agricultural Policy (CAP)is,in effect

If the tariff on computers is not changed,but domestic computer producers shift from domestically produced semiconductors to imported components,then the effective rate of protection in the computer industry will

An import quota is similar to a _ in its effect on imports,EXCEPT that an import quota .

Throughout the post- World War II era,the importance of tariffs as a trade barrier has

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

Filters