Question 1

Nontariff barriers to trade are less transparent than tariffs.

Accepted Answer

A) True 
 B)False

Question 2

What is the name of the agreement related to intellectual property rights?

Accepted Answer

TRIPS,or Trade Relat

Question 3

Give an example of an industry that would seek intellectual property rights protection because its product incorporates innovation and research.

Accepted Answer

Pharmaceuticals,comp

Question 4

Why is the Doha Round called the Doha Development Round?

Accepted Answer

Because it pays part

Question 5

Tariffs reallocate income from

Accepted Answer

A) consumers to producers. 
B) producers to consumers. 
C) government to producers. 
D) consumers to foreigners. 
E) Both A and D. 
A) consumers to producers. 
B) producers to consumers. 
C) government to producers. 
D) consumers to foreigners. 
E) Both A and D.

Question 6

Developing countries have identified which key issues as important to them in current trade talks?

Accepted Answer

The costs and benefits to them of implem

Question 7

Which of the following would be a deadweight loss from a tariff?

Accepted Answer

A) The shift of consumer surplus to government 
B) The increase in producer surplus 
C) The decrease in consumer surplus 
D) The decrease in consumer surplus due to a drop in consumption 
E) All of the above. 
A) The shift of consumer surplus to government 
B) The increase in producer surplus 
C) The decrease in consumer surplus 
D) The decrease in consumer surplus due to a drop in consumption 
E) All of the above.

Question 8

Producer surplus is equal to the area

Accepted Answer

A) under the demand curve and above the supply curve. 
B) above the supply curve and below the price line. 
C) under the demand curve. 
D) under the supply curve. 
E) under the demand curve and above the price line. 
A) under the demand curve and above the supply curve. 
B) above the supply curve and below the price line. 
C) under the demand curve. 
D) under the supply curve. 
E) under the demand curve and above the price line.

Question 9

How is the Agreement on Textiles and Clothing impacting trade today?

Accepted Answer

It phased out quotas as of 200

Question 10

In a small country,the net national cost of tariff protection is equal to the reduction in consumer surplus minus

Accepted Answer

A) the gain to foreigners. 
B) the increase in government revenue and the increase in producer surplus. 
C) the increase in government revenue. 
D) the increase in producer surplus. 
E) the efficiency loss and the consumption side loss. 
A) the gain to foreigners. 
B) the increase in government revenue and the increase in producer surplus. 
C) the increase in government revenue. 
D) the increase in producer surplus. 
E) the efficiency loss and the consumption side loss.

Question 11

The rules for respecting property rights as they relate to trade were negotiated during the Uruguay Round (1986-1994)and culminated in the Trade Related Aspects Intellectual Property Rights (TRIPS)agreement.

Accepted Answer

A) True 
 B)False

Question 12

Efficiency losses are

Accepted Answer

A) deadweight losses caused by consumers being prevented by tariffs from buying products at the world price,products that they value more highly than that price. 
B) the total loss in consumer surplus from a tariff. 
C) the increase in producer surplus that is created by a tariff. 
D) the deadweight loss that is created because domestic firms have to charge higher prices to produce units of output than foreign firms would have to charge. 
A) deadweight losses caused by consumers being prevented by tariffs from buying products at the world price,products that they value more highly than that price. 
B) the total loss in consumer surplus from a tariff. 
C) the increase in producer surplus that is created by a tariff. 
D) the deadweight loss that is created because domestic firms have to charge higher prices to produce units of output than foreign firms would have to charge.

Question 13

Figure 6.1
Use the graph below and the following information to answer the next question(s).The world price of soybeans is $2.00 per bushel,and the importing country is small enough not to affect the world price.
  
-Based on Figure 6.1,given a tariff of $0.25 per bushel on soybean imports,how much will domestic production increase?

Accepted Answer

A) Domestic firms will increase output by 10 million bushels. 
B) Domestic firms will increase output by 20 million bushels. 
C) Domestic firms will increase output by 70 million bushels. 
D) Domestic firms' production will not be changed by the tariff. 
A) Domestic firms will increase output by 10 million bushels. 
B) Domestic firms will increase output by 20 million bushels. 
C) Domestic firms will increase output by 70 million bushels. 
D) Domestic firms' production will not be changed by the tariff.

Question 14

Scenario 6.1
Suppose that United States furniture makers import $100 of wood and parts in order to make a dining room table selling for $500.The imports have no tariff of quota restrictions.
-Based on Scenario 6.1 above,if a tariff of 20 percent is placed on imports of dining room tables,and another tariff of 50 percent is placed on imports of wood and parts,then the effective rate of protection on tables made in the United States is

Accepted Answer

A) 70 percent. 
B) 50 percent. 
C) 20 percent. 
D) 12.5 percent. 
E) 0 percent. 
A) 70 percent. 
B) 50 percent. 
C) 20 percent. 
D) 12.5 percent. 
E) 0 percent.

Question 15

Which of the following is FALSE about issues/negotiations in the Doha Development agenda?

Accepted Answer

A) It is intended to deal with economic development issues and trade barriers facing developing countries that were not adequately addressed in the Uruguay Round. 
B) Many developing countries are upset with the levels of tariffs and other barriers that industrialized countries use to protect agriculture,clothing and textiles. 
C) Industrialized countries want developing countries to reduce their tariffs,which on average are higher than the rates of richer countries. 
D) Developing countries don't use tariffs,and they want higher income countries to follow their model. 
A) It is intended to deal with economic development issues and trade barriers facing developing countries that were not adequately addressed in the Uruguay Round. 
B) Many developing countries are upset with the levels of tariffs and other barriers that industrialized countries use to protect agriculture,clothing and textiles. 
C) Industrialized countries want developing countries to reduce their tariffs,which on average are higher than the rates of richer countries. 
D) Developing countries don't use tariffs,and they want higher income countries to follow their model.

Question 16

Figure 6.1
Use the graph below and the following information to answer the next question(s).The world price of soybeans is $2.00 per bushel,and the importing country is small enough not to affect the world price.
  
-Based on Figure 6.1,suppose the government puts a tariff of $0.25 per bushel on soybean imports.How much will the tariff reduce imports?

Accepted Answer

A) Imports will decrease by 10 million bushels. 
B) Imports will decrease by 20 million bushels. 
C) Imports will decrease by 60 million bushels. 
D) Imports will not change after the tariff. 
A) Imports will decrease by 10 million bushels. 
B) Imports will decrease by 20 million bushels. 
C) Imports will decrease by 60 million bushels. 
D) Imports will not change after the tariff.

Question 17

Which of the following is FALSE?

Accepted Answer

A) Tariffs are a relatively easy tax to administer and often form an important part of revenue for low-income countries. 
B) Taxes on income,sales,and property require more complex accounting systems than do tariffs. 
C) Low-income countries often have large informal markets with the sales of many goods and services not being recorded,which makes it difficult to apply many kinds of taxes. 
D) Taxes on income and property run into powerful interest groups in low-income countries,which work to prevent the creation or payment of these taxes. 
E) Tariffs are not an attractive tax option for most low-income countries,so they mostly rely on quota licenses for revenue. 
A) Tariffs are a relatively easy tax to administer and often form an important part of revenue for low-income countries. 
B) Taxes on income,sales,and property require more complex accounting systems than do tariffs. 
C) Low-income countries often have large informal markets with the sales of many goods and services not being recorded,which makes it difficult to apply many kinds of taxes. 
D) Taxes on income and property run into powerful interest groups in low-income countries,which work to prevent the creation or payment of these taxes. 
E) Tariffs are not an attractive tax option for most low-income countries,so they mostly rely on quota licenses for revenue.

Question 18

In the case of a small country,consumer surplus

Accepted Answer

A) decreases less with a tariff than with an equivalent quota. 
B) decreases less with a quota than with an equivalent tariff. 
C) is not changed by tariffs or quotas. 
D) decreases the same with tariffs and equivalent quotas. 
E) increases more with quotas. 
A) decreases less with a tariff than with an equivalent quota. 
B) decreases less with a quota than with an equivalent tariff. 
C) is not changed by tariffs or quotas. 
D) decreases the same with tariffs and equivalent quotas. 
E) increases more with quotas.

Question 19

Both tariffs and quotas lead to a decrease in imports,a decrease in domestic consumption,and an increase in domestic production.

Accepted Answer

A) True 
 B)False

Nontariff barriers to trade are less transparent than tariffs.

What is the name of the agreement related to intellectual property rights?

Give an example of an industry that would seek intellectual property rights protection because its product incorporates innovation and research.

Why is the Doha Round called the Doha Development Round?

Tariffs reallocate income from

Developing countries have identified which key issues as important to them in current trade talks?

Which of the following would be a deadweight loss from a tariff?

Producer surplus is equal to the area

How is the Agreement on Textiles and Clothing impacting trade today?

In a small country,the net national cost of tariff protection is equal to the reduction in consumer surplus minus

The rules for respecting property rights as they relate to trade were negotiated during the Uruguay Round (1986-1994)and culminated in the Trade Related Aspects Intellectual Property Rights (TRIPS)agreement.

Efficiency losses are

Which of the following is FALSE about issues/negotiations in the Doha Development agenda?

Which of the following is FALSE?

In the case of a small country,consumer surplus

Both tariffs and quotas lead to a decrease in imports,a decrease in domestic consumption,and an increase in domestic production.

The United States in a Global Economy

International Economic Institutions Since World War Ii

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

The Bric Countries in the World Economy

Filters

Exam 6: The Theory of Tariffs and Quotas

Nontariff barriers to trade are less transparent than tariffs.

What is the name of the agreement related to intellectual property rights?

Give an example of an industry that would seek intellectual property rights protection because its product incorporates innovation and research.

Why is the Doha Round called the Doha Development Round?

Tariffs reallocate income from

Developing countries have identified which key issues as important to them in current trade talks?

Which of the following would be a deadweight loss from a tariff?

Producer surplus is equal to the area

How is the Agreement on Textiles and Clothing impacting trade today?

In a small country,the net national cost of tariff protection is equal to the reduction in consumer surplus minus

The rules for respecting property rights as they relate to trade were negotiated during the Uruguay Round (1986-1994)and culminated in the Trade Related Aspects Intellectual Property Rights (TRIPS)agreement.

Efficiency losses are

Which of the following is FALSE about issues/negotiations in the Doha Development agenda?

Which of the following is FALSE?

In the case of a small country,consumer surplus

Both tariffs and quotas lead to a decrease in imports,a decrease in domestic consumption,and an increase in domestic production.

The United States in a Global Economy

International Economic Institutions Since World War Ii

Comparative Advantage and the Gains From Trade

Comparative Advantage and Factor Endowments

Beyond Comparative Advantage

Commercial Policy

International Trade and Labor and Environmental Standards

Trade and the Balance of Payments

Exchange Rates and Exchange Rate Systems

An Introduction to Open Economy Macroeconomics

International Financial Crises

The United States in the World Economy

The European Union: Many Markets Into One

Trade and Policy Reform in Latin America

Export-Oriented Growth in East Asia

The Bric Countries in the World Economy

Filters