Filters
Question type
Study Flashcards

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?

Correct Answer

verifed

verified

The cascading tariff structure is probab...

View Answer

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


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.

F) A) and B)
G) A) and D)

Correct Answer

verifed

verified

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

Correct Answer

verifed

verified

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

Correct Answer

verifed

verified

A policy of tariff reduction in the computer industry is


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.

F) C) and D)
G) A) and C)

Correct Answer

verifed

verified

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


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.

F) None of the above
G) A) and B)

Correct Answer

verifed

verified

A lower tariff on imported steel would most likely benefit


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.

F) None of the above
G) D) and E)

Correct Answer

verifed

verified

The effective rate of protection measures


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.

F) B) and E)
G) C) and D)

Correct Answer

verifed

verified

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

Correct Answer

verifed

verified

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


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

F) A) and B)
G) C) and E)

Correct Answer

verifed

verified

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) 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.

F) C) and D)
G) A) and C)

Correct Answer

verifed

verified

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


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

F) A) and C)
G) All of the above

Correct Answer

verifed

verified

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.

Correct Answer

verifed

verified

E.g.,during a period of price inflation,...

View Answer

In the exporting country,an export subsidy will


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.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

Showing 61 - 74 of 74

Related Exams

Exam 1

Introduction

40 Questions

Exam 2

National Income Accounting and the Balance of Payments

79 Questions

Exam 3

Labor Productivity and Comparative Advantage: The Ricardian Model

70 Questions

Exam 4

Specific Factors and Income Distribution

70 Questions

Exam 5

Resources and Trade: The Heckscher-Ohlin Model

66 Questions

Exam 6

The Standard Trade Model

48 Questions

Exam 7

External Economies of Scale and the International Location of Production

37 Questions

Exam 8

Firms in the Global Economy: Export Decisions,Outsourcing,and Multinational Enterprises

69 Questions

Exam 10

The Political Economy of Trade Policy

63 Questions

Exam 11

Trade Policy in Developing Countries

43 Questions

Exam 12

Controversies in Trade Policy

47 Questions

Show Answer