Question 1

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 2

Which type of tariff is forbidden in the United States on Constitutional grounds?

Accepted Answer

A)  import tariff 
B)  export tariff 
C)  specific tariff 
D)  prohibitive tariff 
E)  import quota 
A)  import tariff 
B)  export tariff 
C)  specific tariff 
D)  prohibitive tariff 
E)  import quota

Question 3

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

Question 4

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 5

The imposition of tariffs will help a nation attain which of the following goals?

Accepted Answer

A)  decreased domestic consumer prices 
B)  increased domestic employment 
C)  increased amount and variety of goods available for consumers 
D)  increased competition between domestic and foreign producers 
E)  gains for domestic producers 
A)  decreased domestic consumer prices 
B)  increased domestic employment 
C)  increased amount and variety of goods available for consumers 
D)  increased competition between domestic and foreign producers 
E)  gains for domestic producers

Question 6

-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 7

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

Accepted Answer

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

Question 8

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 9

A lower tariff on imported steel would most likely benefit

Accepted Answer

A)  foreign producers at the expense of domestic consumers. 
B)  domestic manufacturers of steel. 
C)  domestic consumers of steel. 
D)  workers in the steel industry. 
E)  foreign consumers of steel. 
A)  foreign producers at the expense of domestic consumers. 
B)  domestic manufacturers of steel. 
C)  domestic consumers of steel. 
D)  workers in the steel industry. 
E)  foreign consumers of steel.

Question 10

-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 11

Suppose the United States eliminates its tariff on ball bearings used in producing exports.Ball bearing prices in the United States would be expected to

Accepted Answer

A)  increase, and the foreign demand for U.S. exports would increase. 
B)  decrease, and the foreign demand for U.S. exports would increase. 
C)  increase, and the foreign demand for U.S. exports would decrease. 
D)  decrease, and the foreign demand for U.S. exports would decrease. 
E)  decrease, and the foreign demand would be unchanged. 
A)  increase, and the foreign demand for U.S. exports would increase. 
B)  decrease, and the foreign demand for U.S. exports would increase. 
C)  increase, and the foreign demand for U.S. exports would decrease. 
D)  decrease, and the foreign demand for U.S. exports would decrease. 
E)  decrease, and the foreign demand would be unchanged.

Question 12

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 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 and not in the interests of computer consumers. 
E)  not in the interest of the United States as a whole but in the interests of foreign computer producers. 
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 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 and not in the interests of computer consumers. 
E)  not in the interest of the United States as a whole but in the interests of foreign computer producers.

Question 13

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 14

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

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

Which type of tariff is forbidden in the United States on Constitutional grounds?

In the exporting country,an export subsidy will

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

The imposition of tariffs will help a nation attain which of the following goals?

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

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

The effective rate of protection measures

A lower tariff on imported steel would most likely benefit

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

Suppose the United States eliminates its tariff on ball bearings used in producing exports.Ball bearing prices in the United States would be expected to

A policy of tariff reduction in the computer industry is

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

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

Which type of tariff is forbidden in the United States on Constitutional grounds?

In the exporting country,an export subsidy will

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

The imposition of tariffs will help a nation attain which of the following goals?

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

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

The effective rate of protection measures

A lower tariff on imported steel would most likely benefit

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

Suppose the United States eliminates its tariff on ball bearings used in producing exports.Ball bearing prices in the United States would be expected to

A policy of tariff reduction in the computer industry is

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