Exam 8: Import Tariffs and Quotas Under Perfect Competition

GATT maintained a provision that nations could enact temporary emergency tariffs or quotas if imports threatened the existence of domestic producers. The WTO has maintained that provision. Economists call this:

(Multiple Choice)

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Question 21

The following equations represent a small country's home supply and demand curves for widgets: S = 0 + 2P and D = 1,000 - 2P. I. Find the equilibrium price and quantity for widgets in autarky. II. Now let the world price be $200. Find domestic production, domestic consumption, and the amount of imports. III. Derive the country's import demand curve for widgets. IV. Let the country impose a 10% tariff. Calculate its deadweight losses.

(Essay)

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Question 22

What is the main difference between a quota and a voluntary export restraint?

(Multiple Choice)

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Question 23

WTO is the acronym for:

(Multiple Choice)

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Question 24

Suppose that the U.S. government imposes a 20% tariff to protect U.S. clothing manufacturers adversely affected by the expiration of the Multifibre Arrangement. Compared with a free-trade situation, what will happen to the price of clothing in the United States and to U.S. production of clothing?

(Multiple Choice)

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Question 25

U.S. tire producers did not support the 2009 tariff on Chinese tire imports because U.S. producers that also produce tires in China would have experienced a(n) _ in their _.

(Multiple Choice)

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Question 26

Suppose that the United States is a large country. In fall 2009, the United States imposed tariffs on tires imported from China. The deadweight losses of these tariffs were larger than the terms-of-trade gains to the U.S. economy. Who was better off and who was worse off as a result of these tariffs?

(Multiple Choice)

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Question 27

Who bears the burden of the terms-of-trade effect when a large country imposes a tariff?

(Multiple Choice)

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Question 28

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, the United States can be considered a "small-country" importer of which of the following steel products?

(Multiple Choice)

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Question 29

One way to fairly distribute quotas, while getting revenue for the government, is to:

(Multiple Choice)

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Question 30

Normally the WTO does not allow discriminatory treatment in trade of member nations, but it makes an exception for nations:

(Multiple Choice)

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Question 31

Section 421 of the amended Trade Act of 1974 allows tariffs to be applied against:

(Multiple Choice)

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Question 32

Because a large nation can force the nation exporting the product to pay a substantial amount of the tariff, its _________ may improve after the tariff is imposed.

(Multiple Choice)

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Question 33

Suppose that the free-trade price of a ton of steel is €500. (Note: € is the symbol for the euro, a common currency used in 19 European countries, including Finland.) Finland, a small country, imposes a €60 per-ton specific tariff on imported steel. With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel. What is likely to happen to Finnish production of steel and the price of steel sold in Finland after the €60-per-ton tariff is imposed?

(Multiple Choice)

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Question 34

Which country saw the largest increase in its textile and clothing exports to the United States after the Multifibre Arrangement was abolished?

(Multiple Choice)

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Question 35

Suppose that: (1) the United States has a comparative advantage in producing chemicals; (2) Costa Rica has a comparative advantage in producing sugar, and (3) the United States imposes a quota on its imports of Costa Rican sugar. Now suppose that the United States eliminates its import quotas on Costa Rican sugar. Which of the following is MOST likely to occur for the United States?

(Multiple Choice)

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Question 36

The following graph shows the relationship between a large country importer of a good, say steel, and its tariff rate (in percentages). Explain why the curve reaches maximum and then declines.

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Question 37

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Which one of the following statements is a rationale for the imposition of tariffs?

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Question 38

The following table gives the hypothetical supply and demand of television sets in Guatemala. Guatemala is a small country that is unable to affect world prices. The world price (free-trade price) is $300 per TV set. What is the value of the total welfare losses that Guatemala will suffer as a result of the 100% tariff on imported TVs?

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Question 39

(Figure: Home Market I) The government revenue due to the tariff is:

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Question 40

Showing 21 - 40 of 183

GATT maintained a provision that nations could enact temporary emergency tariffs or quotas if imports threatened the existence of domestic producers. The WTO has maintained that provision. Economists call this:

What is the main difference between a quota and a voluntary export restraint?

WTO is the acronym for:

Suppose that the U.S. government imposes a 20% tariff to protect U.S. clothing manufacturers adversely affected by the expiration of the Multifibre Arrangement. Compared with a free-trade situation, what will happen to the price of clothing in the United States and to U.S. production of clothing?

U.S. tire producers did not support the 2009 tariff on Chinese tire imports because U.S. producers that also produce tires in China would have experienced a(n) _ in their _.

Who bears the burden of the terms-of-trade effect when a large country imposes a tariff?

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, the United States can be considered a "small-country" importer of which of the following steel products?

One way to fairly distribute quotas, while getting revenue for the government, is to:

Normally the WTO does not allow discriminatory treatment in trade of member nations, but it makes an exception for nations:

Section 421 of the amended Trade Act of 1974 allows tariffs to be applied against:

Because a large nation can force the nation exporting the product to pay a substantial amount of the tariff, its _________ may improve after the tariff is imposed.

Which country saw the largest increase in its textile and clothing exports to the United States after the Multifibre Arrangement was abolished?

The following graph shows the relationship between a large country importer of a good, say steel, and its tariff rate (in percentages). Explain why the curve reaches maximum and then declines.

Which one of the following statements is a rationale for the imposition of tariffs?

(Figure: Home Market I) The government revenue due to the tariff is:

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

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Exam 8: Import Tariffs and Quotas Under Perfect Competition

GATT maintained a provision that nations could enact temporary emergency tariffs or quotas if imports threatened the existence of domestic producers. The WTO has maintained that provision. Economists call this:

What is the main difference between a quota and a voluntary export restraint?

WTO is the acronym for:

Suppose that the U.S. government imposes a 20% tariff to protect U.S. clothing manufacturers adversely affected by the expiration of the Multifibre Arrangement. Compared with a free-trade situation, what will happen to the price of clothing in the United States and to U.S. production of clothing?

U.S. tire producers did not support the 2009 tariff on Chinese tire imports because U.S. producers that also produce tires in China would have experienced a(n) ___________ in their ___________.

Who bears the burden of the terms-of-trade effect when a large country imposes a tariff?

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, the United States can be considered a "small-country" importer of which of the following steel products?

One way to fairly distribute quotas, while getting revenue for the government, is to:

Normally the WTO does not allow discriminatory treatment in trade of member nations, but it makes an exception for nations:

Section 421 of the amended Trade Act of 1974 allows tariffs to be applied against:

Because a large nation can force the nation exporting the product to pay a substantial amount of the tariff, its _________ may improve after the tariff is imposed.

Which country saw the largest increase in its textile and clothing exports to the United States after the Multifibre Arrangement was abolished?

The following graph shows the relationship between a large country importer of a good, say steel, and its tariff rate (in percentages). Explain why the curve reaches maximum and then declines.

Which one of the following statements is a rationale for the imposition of tariffs?

(Figure: Home Market I) The government revenue due to the tariff is:

Trade in the Global Economy

Trade and Technology: The Ricardian Model

Gains and Losses From Trade in the Specific-Factors Model

Trade and Resources: the Heckscher-Ohlin Model

Movement of Labor and Capital Between Countries

Increasing Returns to Scale and Monopolistic Competition

Offshoring of Goods and Services

Import Tariffs and Quotas Under Imperfect Competition

Export Subsidies in Agriculture and High-Technology Industries

International Agreements: Trade, Labor, and the Environment

The Global Macroeconomy

Introduction to Exchange Rates and the Foreign Exchange Market

Exchange Rates I: the Monetary Approach in the Long Run

Exchange Rates II: the Asset Approach in the Short Run

National and International Accounts: Income, Wealth, and the Balance of Payments

Balance of Payments I: the Gains From Financial Globalization

Balance of Payments II: Output, Exchange Rates, and Macroeconomic Policies in the Short Run

Fixed Versus Floating: International Monetary Experience

Exchange Rate Crises: How Pegs Work and How They Break

The Euro

Topics in International Macroeconomics

Filters

U.S. tire producers did not support the 2009 tariff on Chinese tire imports because U.S. producers that also produce tires in China would have experienced a(n) _ in their _.