A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: \[\begin{array} { l l } \text { World price of wine (free trade): } & \$ 20 \text { per bottle } \\ \text { Domestic production (free trade): } & 500,000 \text { bottles } \\ \text { Domestic production (after tariff): } & 600,000 \text { bottles } \\ \text { Domestic consumption (free trade): } & 750,000 \text { bottles } \\ \text { Domestic consumption (after tariff): } & 650,000 \text { bottles } \end{array}\] Calculate the government revenue from the tariff.

A) $250,000 B) $1.25 million C) $3.5 million D) $500,000 A) $250,000 B) $1.25 million C) $3.5 million D) $500,000 A

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: \[\begin{array} { l l } \text { World price of wine (free trade): } & \$ 20 \text { per bottle } \\ \text { Domestic production (free trade): } & 500,000 \text { bottles } \\ \text { Domestic production (after tariff): } & 600,000 \text { bottles } \\ \text { Domestic consumption (free trade): } & 750,000 \text { bottles } \\ \text { Domestic consumption (after tariff): } & 650,000 \text { bottles } \end{array}\] The imposition of the tariff on wine will cause the surplus of the domestic producers to _____ by _____.

A) rise; $1 million B) rise; $500,000 C) fall; $2.5 million D) rise; $2.75 million A) rise; $1 million B) rise; $500,000 C) fall; $2.5 million D) rise; $2.75 million

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: \[\begin{array} { l l } \text { World price of wine (free trade): } & \$ 20 \text { per bottle } \\ \text { Domestic production (free trade): } & 500,000 \text { bottles } \\ \text { Domestic production (after tariff): } & 600,000 \text { bottles } \\ \text { Domestic consumption (free trade): } & 750,000 \text { bottles } \\ \text { Domestic consumption (after tariff): } & 650,000 \text { bottles } \end{array}\] The consumption effect of the tariff on wine is worth

A) $250,000. B) $500,000. C) $3.5 million. D) $2.75 million. A) $250,000. B) $500,000. C) $3.5 million. D) $2.75 million.

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: \[\begin{array} { l l } \text { World price of wine (free trade): } & \$ 20 \text { per bottle } \\ \text { Domestic production (free trade): } & 500,000 \text { bottles } \\ \text { Domestic production (after tariff): } & 600,000 \text { bottles } \\ \text { Domestic consumption (free trade): } & 750,000 \text { bottles } \\ \text { Domestic consumption (after tariff): } & 650,000 \text { bottles } \end{array}\] The imposition of the tariff on wine will cause the country's economic well-being to _____ by _____.

A) fall; $0.5 million B) rise; $0.75 million C) fall; $100,000 D) fall; $0.75 million A) fall; $0.5 million B) rise; $0.75 million C) fall; $100,000 D) fall; $0.75 million

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: \[\begin{array} { l l } \text { World price of wine (free trade): } & \$ 20 \text { per bottle } \\ \text { Domestic production (free trade): } & 500,000 \text { bottles } \\ \text { Domestic production (after tariff): } & 600,000 \text { bottles } \\ \text { Domestic consumption (free trade): } & 750,000 \text { bottles } \\ \text { Domestic consumption (after tariff): } & 650,000 \text { bottles } \end{array}\] The production effect of the tariff on wine is worth

A) $250,000. B) $500,000. C) $2.5 million. D) $2.75 million. A) $250,000. B) $500,000. C) $2.5 million. D) $2.75 million.

Exam 8: Analysis of a Tariff

At free-trade prices, a tennis racquet in country A, a small country, sells for $100 and contains $40 worth of aluminum inputs and $30 worth of plastic. In country A, the nominal tariff rates are 40% on tennis racquets, 20% on aluminum, and 10% on plastic. Based on this information, what is the effective rate of protection for the racquet industry in country A?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

Under free trade, a large country produces 1 million leather bags per year and imports another 2 million bags per year at the world price of $60 per bag. Assume that the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million. Calculate the tariff revenue collected by the domestic government.

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): \ 20 per bottle Domestic production (free trade): 500,000 bottles Domestic production (after tariff): 600,000 bottles Domestic consumption (free trade): 750,000 bottles Domestic consumption (after tariff): 650,000 bottles Calculate the government revenue from the tariff.

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. Following the imposition of tariff, the domestic producer surplus _ by the area _.

(Multiple Choice)

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Question 4

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): \ 20 per bottle Domestic production (free trade): 500,000 bottles Domestic production (after tariff): 600,000 bottles Domestic consumption (free trade): 750,000 bottles Domestic consumption (after tariff): 650,000 bottles The imposition of the tariff on wine will cause the surplus of the domestic producers to _ by _.

(Multiple Choice)

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Question 5

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): \ 20 per bottle Domestic production (free trade): 500,000 bottles Domestic production (after tariff): 600,000 bottles Domestic consumption (free trade): 750,000 bottles Domestic consumption (after tariff): 650,000 bottles The consumption effect of the tariff on wine is worth

(Multiple Choice)

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Question 6

Suppose country A collectively enjoys monopsony power in good X. If country A imposes a tariff on the imports of good X, the world price of good X will:

(Multiple Choice)

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Question 7

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): \ 20 per bottle Domestic production (free trade): 500,000 bottles Domestic production (after tariff): 600,000 bottles Domestic consumption (free trade): 750,000 bottles Domestic consumption (after tariff): 650,000 bottles The imposition of the tariff on wine will cause the country's economic well-being to _ by _.

(Multiple Choice)

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Question 8

A tariff always lowers the well-being of each nation, including the nation imposing the tariff.

(True/False)

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Question 9

The lower the price elasticity of foreign supply of a country's imports:

(Multiple Choice)

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Question 10

A small country is considering imposing a tariff on imported wine at the rate of $5 per bottle. Economists have estimated the following based on this tariff amount: World price of wine (free trade): \ 20 per bottle Domestic production (free trade): 500,000 bottles Domestic production (after tariff): 600,000 bottles Domestic consumption (free trade): 750,000 bottles Domestic consumption (after tariff): 650,000 bottles The production effect of the tariff on wine is worth

(Multiple Choice)

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Question 11

A tariff imposed by a small country hurts the tariff imposing country but the rest of the world gains.

(True/False)

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Question 12

Which of the following has overseen the global rules of government policy toward international trade since 1995?

(Multiple Choice)

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Question 13

If the imposition of tariff on a commodity alters the relative prices of the imposing country's exports to its imports, it is referred to as the:

(Multiple Choice)

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Question 14

The figure given below shows the market for computers in the U.S. The domestic price line inclusive of the tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of computers respectively. The imposition of a tariff on computers caused the surplus of the U.S. consumers to _ by _.

(Multiple Choice)

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Question 15

The production effect of a tariff measures the welfare gain of domestic producers who can sell their product at a higher price as a result of the tariff.

(True/False)

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Question 16

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. The consumption effect of the tariff on shoes is measured by the area _____.

(Multiple Choice)

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Question 17

Which of the following is an impact of tariffs on the country imposing them?

(Multiple Choice)

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Question 18

A large country can gain from imposing a tariff on the import of a good if:

(Multiple Choice)

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Question 19

Which of the following statements is NOT correct?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 60

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. Following the imposition of tariff, the domestic producer surplus _ by the area _.

Suppose country A collectively enjoys monopsony power in good X. If country A imposes a tariff on the imports of good X, the world price of good X will:

A tariff always lowers the well-being of each nation, including the nation imposing the tariff.

The lower the price elasticity of foreign supply of a country's imports:

A tariff imposed by a small country hurts the tariff imposing country but the rest of the world gains.

Which of the following has overseen the global rules of government policy toward international trade since 1995?

If the imposition of tariff on a commodity alters the relative prices of the imposing country's exports to its imports, it is referred to as the:

The production effect of a tariff measures the welfare gain of domestic producers who can sell their product at a higher price as a result of the tariff.

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. The consumption effect of the tariff on shoes is measured by the area _____.

Which of the following is an impact of tariffs on the country imposing them?

A large country can gain from imposing a tariff on the import of a good if:

Which of the following statements is NOT correct?

International Economics Is Different

The Basic Theory Using Demand and Supply

Why Everybody Trades: Comparative Advantage

Trade: Factor Availability and Factor Proportions Are Key

Who Gains and Who Loses From Trade

Scale Economies, Imperfect Competition, and Trade

Growth and Trade Part II: Trade Policy

Nontariff Barriers to Imports

Arguments for and Against Protection

Pushing Exports

Trade Blocs and Trade Blocks

Trade and the Environment

Trade Policies for Developing Countries

Multinationals and Migration: International Factor Movements

Payments Among Nations

The Foreign Exchange Market

Forward Exchange and International Financial Investment

What Determines Exchange Rates

Government Policies Toward the Foreign Exchange Market

International Lending and Financial Crises

How Does the Open Macroeconomy Work

Internal and External Balance With Fixed Exchange Rates

Floating Exchange Rates and Internal Balance

National and Global Choices: Floating Rates and the Alternatives

Filters

Exam 8: Analysis of a Tariff

Suppose country A collectively enjoys monopsony power in good X. If country A imposes a tariff on the imports of good X, the world price of good X will:

A tariff always lowers the well-being of each nation, including the nation imposing the tariff.

The lower the price elasticity of foreign supply of a country's imports:

A tariff imposed by a small country hurts the tariff imposing country but the rest of the world gains.

Which of the following has overseen the global rules of government policy toward international trade since 1995?

If the imposition of tariff on a commodity alters the relative prices of the imposing country's exports to its imports, it is referred to as the:

The production effect of a tariff measures the welfare gain of domestic producers who can sell their product at a higher price as a result of the tariff.

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. Dd and Sd are the domestic demand and supply curves of shoes respectively. The consumption effect of the tariff on shoes is measured by the area _____.

Which of the following is an impact of tariffs on the country imposing them?

A large country can gain from imposing a tariff on the import of a good if:

Which of the following statements is NOT correct?

International Economics Is Different

The Basic Theory Using Demand and Supply

Why Everybody Trades: Comparative Advantage

Trade: Factor Availability and Factor Proportions Are Key

Who Gains and Who Loses From Trade

Scale Economies, Imperfect Competition, and Trade

Growth and Trade Part II: Trade Policy

Nontariff Barriers to Imports

Arguments for and Against Protection

Pushing Exports

Trade Blocs and Trade Blocks

Trade and the Environment

Trade Policies for Developing Countries

Multinationals and Migration: International Factor Movements

Payments Among Nations

The Foreign Exchange Market

Forward Exchange and International Financial Investment

What Determines Exchange Rates

Government Policies Toward the Foreign Exchange Market

International Lending and Financial Crises

How Does the Open Macroeconomy Work

Internal and External Balance With Fixed Exchange Rates

Floating Exchange Rates and Internal Balance

National and Global Choices: Floating Rates and the Alternatives

Filters

The figure given below shows the market for shoes in the U.S. The domestic price line with tariff lies above the international price line. D_d and S_d are the domestic demand and supply curves of shoes respectively. The consumption effect of the tariff on shoes is measured by the area _____.