Question 1

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

Accepted Answer

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

Question 2

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 3

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

Accepted Answer

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

Question 4

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 5

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 6

The tariff levied in a "large country" (Home),lowers the world price of the imported good.This causes

Accepted Answer

A)  foreign consumers to demand less of the good on which was levied a tariff. 
B)  domestic demand for imports to decrease. 
C)  domestic demand for imports to increase. 
D)  foreign suppliers to produce less of the good on which was levied a tariff. 
E)  no change in the foreign price of the good it imports. 
A)  foreign consumers to demand less of the good on which was levied a tariff. 
B)  domestic demand for imports to decrease. 
C)  domestic demand for imports to increase. 
D)  foreign suppliers to produce less of the good on which was levied a tariff. 
E)  no change in the foreign price of the good it imports.

Question 7

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

Question 8

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

Accepted Answer

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

Question 9

An important difference between tariffs and quotas is that tariffs

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

-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...

Question 12

The most vocal political pressure for tariffs is generally made by

Accepted Answer

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

Question 13

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 14

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 15

Which of the following is a fixed percentage of the value of an imported product?

Accepted Answer

A)  specific tariff 
B)  ad valorem tariff 
C)  nominal tariff 
D)  effective protection tariff 
E)  infant industry tariff 
A)  specific tariff 
B)  ad valorem tariff 
C)  nominal tariff 
D)  effective protection tariff 
E)  infant industry tariff

Question 16

The deadweight loss of a tariff

Accepted Answer

A)  is a social loss because it promotes inefficient use of national resources. 
B)  is a social loss because it reduces the revenue of the government. 
C)  is not a social loss because it merely redistributes revenue from one sector to another. 
D)  is not a social loss because it is paid for by rich corporations. 
E)  is not a social loss because it aids domestic consumers. 
A)  is a social loss because it promotes inefficient use of national resources. 
B)  is a social loss because it reduces the revenue of the government. 
C)  is not a social loss because it merely redistributes revenue from one sector to another. 
D)  is not a social loss because it is paid for by rich corporations. 
E)  is not a social loss because it aids domestic consumers.

Question 17

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.

Accepted Answer

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

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

The imposition of tariffs on imports results in deadweight (triangle)losses.These are

Accepted Answer

A)  production and consumption distortion effects. 
B)  redistribution effects. 
C)  revenue effects 
D)  efficiency effects. 
E)  distortion of incentives. 
A)  production and consumption distortion effects. 
B)  redistribution effects. 
C)  revenue effects 
D)  efficiency effects. 
E)  distortion of incentives.

Question 20

-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...

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

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

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

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.

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

The tariff levied in a "large country" (Home),lowers the world price of the imported good.This causes

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.With a specific tariff of $3 per unit,what is the quantity of Widgets produced domestically?

An important difference between tariffs and quotas is that tariffs

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

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

The most vocal political pressure for tariffs is generally made by

An export subsidy is

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

Which of the following is a fixed percentage of the value of an imported product?

The deadweight loss of a tariff

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.

In an inflationary environment,then over time

The imposition of tariffs on imports results in deadweight (triangle)losses.These are

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

Introduction

National Income Accounting and the Balance of Payments

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

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

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

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

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.

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

The tariff levied in a "large country" (Home),lowers the world price of the imported good.This causes

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.With a specific tariff of $3 per unit,what is the quantity of Widgets produced domestically?

An important difference between tariffs and quotas is that tariffs

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

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

The most vocal political pressure for tariffs is generally made by

An export subsidy is

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

Which of the following is a fixed percentage of the value of an imported product?

The deadweight loss of a tariff

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.

In an inflationary environment,then over time

The imposition of tariffs on imports results in deadweight (triangle)losses.These are

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

Introduction

National Income Accounting and the Balance of Payments

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

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

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.

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.