Exam 8: Import Tariffs and Quotas Under Perfect Competition

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. Suppose that Guatemala now imposes a 100% tariff on imported TVs. How many TVs will it now import?

(Multiple Choice)

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Question 141

(Figure: The Soybean Market) Because there is no government revenue as a result of the quota, one of the parties in the trade transaction makes a "return" equal to lost government revenue (P - MC) · Q_imports. This is called:

(Multiple Choice)

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Question 142

The United States applies a 25% tariff on imported pickup trucks. If the United States is considered to be a large country, then the U.S. price of an imported Toyota pickup with a CIF price (price landed at the U.S. border prior to the imposition of the tariff) of $20,000 will be:

(Multiple Choice)

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Question 143

Suppose that Norway is a small country and currently produces 100,000 board feet of lumber at $600 per 1,000 board feet. Then it begins to trade at the world price of $500 per 1,000 board feet. As a result of trade, Norway's production falls to 50,000 board feet and its consumption increases to 200,000 board feet. How many board feet of lumber does Norway now import?

(Multiple Choice)

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Question 144

(Figure: Home Market I) After the imposition of the tariff, the producer surplus in the home country:

(Multiple Choice)

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Question 145

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 will happen to Finnish welfare losses if Finnish demand for steel increases and the quota remains unchanged?

(Multiple Choice)

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Question 146

Downgrading refers to:

(Multiple Choice)

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Question 147

(Figure: Home's Import-Competing Industry) What is the domestic price before trade?

(Multiple Choice)

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Question 148

The escape clause in U.S. trade law:

(Multiple Choice)

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Question 149

Why is it politically difficult for the United States to eliminate or reduce its quotas on imported sugar?

(Short Answer)

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Question 150

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, for which product is the U.S. optimal tariff the largest?

(Multiple Choice)

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Question 151

If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity.

(Multiple Choice)

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Question 152

GATT/WTO allows nations to impose tariffs in response to unfair trade practices such as:

(Multiple Choice)

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Question 153

If a large country imposes a tariff:

(Multiple Choice)

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Question 154

(Figure: Home Market I) The home market shown in the figure has imposed a _____ tariff.

(Multiple Choice)

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Question 155

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. It is almost certain that the 2002 imposition of 13% to 15% tariffs on steel tubes and pipes resulted in:

(Multiple Choice)

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Question 156

How many units will a country import if S = 1P represents its home supply curve, D = 100 - 1P represents its home demand curve, and the world price is $25?

(Multiple Choice)

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Question 157

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. Who will gain and who will lose as a result Finland's €60-per-ton tariff on imported steel?

(Multiple Choice)

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Question 158

Explain why the exporting foreign country will always lose when a large home country imposes a tariff.

(Essay)

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Question 159

China is now a member of the World Trade Organization. For China, one of the benefits of WTO membership is:

(Multiple Choice)

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Question 160

Showing 141 - 160 of 183

(Figure: The Soybean Market) Because there is no government revenue as a result of the quota, one of the parties in the trade transaction makes a "return" equal to lost government revenue (P - MC) · Q_imports. This is called:

The United States applies a 25% tariff on imported pickup trucks. If the United States is considered to be a large country, then the U.S. price of an imported Toyota pickup with a CIF price (price landed at the U.S. border prior to the imposition of the tariff) of $20,000 will be:

(Figure: Home Market I) After the imposition of the tariff, the producer surplus in the home country:

Downgrading refers to:

(Figure: Home's Import-Competing Industry) What is the domestic price before trade?

The escape clause in U.S. trade law:

Why is it politically difficult for the United States to eliminate or reduce its quotas on imported sugar?

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, for which product is the U.S. optimal tariff the largest?

If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity.

GATT/WTO allows nations to impose tariffs in response to unfair trade practices such as:

If a large country imposes a tariff:

(Figure: Home Market I) The home market shown in the figure has imposed a _____ tariff.

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. It is almost certain that the 2002 imposition of 13% to 15% tariffs on steel tubes and pipes resulted in:

How many units will a country import if S = 1P represents its home supply curve, D = 100 - 1P represents its home demand curve, and the world price is $25?

Explain why the exporting foreign country will always lose when a large home country imposes a tariff.

China is now a member of the World Trade Organization. For China, one of the benefits of WTO membership 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

Exam 8: Import Tariffs and Quotas Under Perfect Competition

(Figure: The Soybean Market) Because there is no government revenue as a result of the quota, one of the parties in the trade transaction makes a "return" equal to lost government revenue (P - MC) · Qimports. This is called:

The United States applies a 25% tariff on imported pickup trucks. If the United States is considered to be a large country, then the U.S. price of an imported Toyota pickup with a CIF price (price landed at the U.S. border prior to the imposition of the tariff) of $20,000 will be:

(Figure: Home Market I) After the imposition of the tariff, the producer surplus in the home country:

Downgrading refers to:

(Figure: Home's Import-Competing Industry) What is the domestic price before trade?

The escape clause in U.S. trade law:

Why is it politically difficult for the United States to eliminate or reduce its quotas on imported sugar?

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. According to the table, for which product is the U.S. optimal tariff the largest?

If a quota license is awarded to a domestic firm without an auction, it may generate bribes or lobbying spending to earn this revenue. Economists call this a(n) ____ activity.

GATT/WTO allows nations to impose tariffs in response to unfair trade practices such as:

If a large country imposes a tariff:

(Figure: Home Market I) The home market shown in the figure has imposed a _____ tariff.

(Table: Export Supply Elasticities) This table gives the foreign elasticity of supply for several types of U.S. steel imports. It is almost certain that the 2002 imposition of 13% to 15% tariffs on steel tubes and pipes resulted in:

How many units will a country import if S = 1P represents its home supply curve, D = 100 - 1P represents its home demand curve, and the world price is $25?

Explain why the exporting foreign country will always lose when a large home country imposes a tariff.

China is now a member of the World Trade Organization. For China, one of the benefits of WTO membership 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

(Figure: The Soybean Market) Because there is no government revenue as a result of the quota, one of the parties in the trade transaction makes a "return" equal to lost government revenue (P - MC) · Q_imports. This is called: