Question 1

If a small nation increases the tariff on its import commodity:

Accepted Answer

A) the rent of domestic producers of the commodity increases 
B) the protection cost of the tariff decreases 
C) the deadweight loss decreases 
D) all of the above 
A) the rent of domestic producers of the commodity increases 
B) the protection cost of the tariff decreases 
C) the deadweight loss decreases 
D) all of the above A

Question 2

Which of the following statements is incorrect?

Accepted Answer

A) An ad valorem tariff is expressed as a percentage of the value of the traded commodity 
B) a specific tariff is expressed as a fixed sum of the value of the traded commodity. 
C) export tariffs are prohibited by the U.S.Constitution 
D) The U.S.uses exclusively the specific tariff 
A) An ad valorem tariff is expressed as a percentage of the value of the traded commodity 
B) a specific tariff is expressed as a fixed sum of the value of the traded commodity. 
C) export tariffs are prohibited by the U.S.Constitution 
D) The U.S.uses exclusively the specific tariff D

Question 3

Which of the following statements is incorrect with respect to the rate of effective protection?

Accepted Answer

A) for given values of ai and ti,g is larger the greater is t 
B) for a given value of t and ti,g is larger the greater is ai 
C) g exceeds,is equal to or is smaller than t,as ti is smaller than,is equal to or is larger than t 
D) when aiti exceeds t,the rate of effective protection is positive 
A) for given values of ai and ti,g is larger the greater is t 
B) for a given value of t and ti,g is larger the greater is ai 
C) g exceeds,is equal to or is smaller than t,as ti is smaller than,is equal to or is larger than t 
D) when aiti exceeds t,the rate of effective protection is positive D

Question 4

The imposition of an import tariff by a small nation:

Accepted Answer

A) increases the relative price of the import commodity for domestic producers and consumers 
B) reduces the relative price of the import commodity for domestic producers and consumers 
C) increases the relative price of the import commodity for the nation as a whole 
D) any of the above is possible 
A) increases the relative price of the import commodity for domestic producers and consumers 
B) reduces the relative price of the import commodity for domestic producers and consumers 
C) increases the relative price of the import commodity for the nation as a whole 
D) any of the above is possible

Question 5

According to the Stolper-Samuelson theorem,the imposition of a tariff by a nation:

Accepted Answer

A) increases the real return of the nation's abundant factor 
B) increases the real return of the nation's scarce factor 
C) reduces the real return of the nation's scarce factor 
D) any of the above is possible 
A) increases the real return of the nation's abundant factor 
B) increases the real return of the nation's scarce factor 
C) reduces the real return of the nation's scarce factor 
D) any of the above is possible

Question 6

The imposition of an import tariff by a nation can be represented by a rotation of the:

Accepted Answer

A) nation's offer curve away from the axis measuring the commodity of its comparative advantage 
B) the nation's offer curve toward the axis measuring the commodity of its comparative advantage 
C) the other nation's offer curve toward the axis measuring the commodity of its comparative advantage 
D) the other nation's offer curve away from the axis measuring the commodity of its 
A) nation's offer curve away from the axis measuring the commodity of its comparative advantage 
B) the nation's offer curve toward the axis measuring the commodity of its comparative advantage 
C) the other nation's offer curve toward the axis measuring the commodity of its comparative advantage 
D) the other nation's offer curve away from the axis measuring the commodity of its

Question 7

If a small nation increases the tariff on its import commodity,its:

Accepted Answer

A) consumption of the commodity increases 
B) production of the commodity decreases 
C) imports of the commodity increase 
D) none of the above 
A) consumption of the commodity increases 
B) production of the commodity decreases 
C) imports of the commodity increase 
D) none of the above

Question 8

With ai=50%,ti=0,and t=20%,g is:

Accepted Answer

A) 40% 
B) 20% 
C) 80% 
D) 0 
A) 40% 
B) 20% 
C) 80% 
D) 0

Question 9

The imposition of an optimum tariff by a large nation:

Accepted Answer

A) improves its terms of trade 
B) reduces the volume of trade 
C) increases the nation's welfare 
D) all of the above 
A) improves its terms of trade 
B) reduces the volume of trade 
C) increases the nation's welfare 
D) all of the above

Question 10

The increase in producer surplus when a small nation imposes a tariff is measured by the area:

Accepted Answer

A) to the left of the supply curve between the commodity price with and without the tariff 
B) under the supply curve between the quantity produced with and without the tariff 
C) under the demand curve between the commodity price with and without the tariff 
D) none of the above. 
A) to the left of the supply curve between the commodity price with and without the tariff 
B) under the supply curve between the quantity produced with and without the tariff 
C) under the demand curve between the commodity price with and without the tariff 
D) none of the above.

Question 11

The imposition of an import tariff by a small nation:

Accepted Answer

A) increases the nation's welfare 
B) reduces the nation's welfare 
C) leaves the nation's welfare unchanged 
D) any of the above is possible 
A) increases the nation's welfare 
B) reduces the nation's welfare 
C) leaves the nation's welfare unchanged 
D) any of the above is possible

Question 12

The imposition of an import tariff by a nation results in:

Accepted Answer

A) an increase in relative price of the nation's import commodity 
B) an increase in the nation's production of its importable commodity 
C) reduces the real return of the nation's abundant factor 
D) all of the above 
A) an increase in relative price of the nation's import commodity 
B) an increase in the nation's production of its importable commodity 
C) reduces the real return of the nation's abundant factor 
D) all of the above

Question 13

The imposition of an import tariff by a large nation:

Accepted Answer

A) increases the nation's terms of trade 
B) reduces the volume of trade 
C) may increase or reduce the nation's welfare 
D) all of the above 
A) increases the nation's terms of trade 
B) reduces the volume of trade 
C) may increase or reduce the nation's welfare 
D) all of the above

Question 14

The optimum tariff for a small nation is:

Accepted Answer

A) 100% 
B) 50% 
C) 0 
D) depends on elasticities 
A) 100% 
B) 50% 
C) 0 
D) depends on elasticities

Question 15

A small nation is one:

Accepted Answer

A) which does not affect world price by its trading 
B) which faces an infinitely elastic world supply curve for its import commodity 
C) whose consumers will pay a price that exceeds the world price by the amount of the tariff 
D) all of the above 
A) which does not affect world price by its trading 
B) which faces an infinitely elastic world supply curve for its import commodity 
C) whose consumers will pay a price that exceeds the world price by the amount of the tariff 
D) all of the above

If a small nation increases the tariff on its import commodity:

Which of the following statements is incorrect?

Which of the following statements is incorrect with respect to the rate of effective protection?

The imposition of an import tariff by a small nation:

According to the Stolper-Samuelson theorem,the imposition of a tariff by a nation:

The imposition of an import tariff by a nation can be represented by a rotation of the:

If a small nation increases the tariff on its import commodity,its:

With a_i=50%,t_i=0,and t=20%,g is:

The imposition of an optimum tariff by a large nation:

The increase in producer surplus when a small nation imposes a tariff is measured by the area:

The imposition of an import tariff by a small nation:

The imposition of an import tariff by a nation results in:

The imposition of an import tariff by a large nation:

The optimum tariff for a small nation is:

A small nation is one:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters

Exam 8: Trade Restrictions: Tariffs

If a small nation increases the tariff on its import commodity:

Which of the following statements is incorrect?

Which of the following statements is incorrect with respect to the rate of effective protection?

The imposition of an import tariff by a small nation:

According to the Stolper-Samuelson theorem,the imposition of a tariff by a nation:

The imposition of an import tariff by a nation can be represented by a rotation of the:

If a small nation increases the tariff on its import commodity,its:

With ai=50%,ti=0,and t=20%,g is:

The imposition of an optimum tariff by a large nation:

The increase in producer surplus when a small nation imposes a tariff is measured by the area:

The imposition of an import tariff by a small nation:

The imposition of an import tariff by a nation results in:

The imposition of an import tariff by a large nation:

The optimum tariff for a small nation is:

A small nation is one:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, Offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, Imperfect Competition, and International Trade

Economic Growth and International Trade

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

International Resource Movements and Multinational Corporations

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open-Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, Present, and Future

Filters

With a_i=50%,t_i=0,and t=20%,g is: