Question 1

imposition of a tariff improves the terms of trade of the imposing country but reduces its

Accepted Answer

A) Commodity prices 
B) Volume of trade 
C) Cost of production 
D) None of the above

Question 2

The actual exchange ratio between two countries will depend upon the

Accepted Answer

A) Supply 
B) Price 
C) Reciprocal demand 
D) All of the above

Question 3

Prof. Ronald Findlay modified Ricardo's measure of gains from trade using

Accepted Answer

A) A straight line 
B) Balance of payments 
C) The community indifference curve 
D) Short-term and long-term lendings and borrowings

Question 4

The tariff rates which are based on trade agreements or treaties with other countries is known as

Accepted Answer

A) Revenue tariffs 
B) Protective tariffs 
C) Multiple column tariff 
D) Conventional tariff

Question 5

There is an improvement in the welfare of country only when the

Accepted Answer

A) Positive effect of a tariff is lesser than its negative effect 
B) Positive effect is larger than its negative effect 
C) Positive effect of a tariff is equal to its negative effect 
D) None of the above

Exam 4: Understanding Tariffs and Trade Policies

imposition of a tariff improves the terms of trade of the imposing country but reduces its

The actual exchange ratio between two countries will depend upon the

Prof. Ronald Findlay modified Ricardo's measure of gains from trade using

The tariff rates which are based on trade agreements or treaties with other countries is known as

There is an improvement in the welfare of country only when the