Question 1

A tariff can ________ raise a country's welfare.

Accepted Answer

A) never 
B) sometimes 
C) always 
A) never 
B) sometimes 
C) always B

Question 2

Write an essay on the gains from free international trade.

Accepted Answer

Static gains from trade-trade leads to a new set of relative prices which,in turn,imply new consumption levels and a redistribution of resources in favor of comparative advantage industries.The combination of effects leads,in a static environment,to an improved standard of living.Dynamic gains from trade-trade can lead to an outward expansion of a country's production possibility frontier.

Question 3

A country gains from international trade if its post-trade ________ point lies outside its production possibility frontier.

Accepted Answer

A) production 
B) autarky 
C) consumption 
D) All of the above 
A) production 
B) autarky 
C) consumption 
D) All of the above C

Question 4

Tariffs tend to escalate with stages of processing.

Accepted Answer

A) True 
 B)False

Question 5

________ gains from trade refer to the situation where,over time,international trade leads to an outward shift in a country's production possibility frontier.

Accepted Answer

A) Static 
B) Dynamic 
C) Political 
D) Outward 
A) Static 
B) Dynamic 
C) Political 
D) Outward

Question 6

Using a demand and supply diagram,illustrate the effects of a tariff on imports.In particular,show the effects on domestic production,domestic consumption,imports,prices,consumer welfare,producer welfare,government revenue,and overall economic welfare.

Accepted Answer

@#IMG-DLM& 
Domestic production rises from Q₁ to Q

Question 7

Most tariffs have

Accepted Answer

A) only revenue effects. 
B) only protective effects. 
C) both protective and revenue effects. 
D) neither protective nor revenue effects. 
A) only revenue effects. 
B) only protective effects. 
C) both protective and revenue effects. 
D) neither protective nor revenue effects.

Question 8

A country can never raise its standard of living by imposing a tariff.

Accepted Answer

A) True 
 B)False

Question 9

The increase in food prices around the world at the end of the 2000s decade led several developing countries to impose export tariffs on which of the following exports?

Accepted Answer

A) Rice. 
B) Tomatoes. 
C) Oil. 
D) Bananas. 
A) Rice. 
B) Tomatoes. 
C) Oil. 
D) Bananas.

Question 10

Tariffs can never raise a country's standard of living.True or false? Explain carefully.

Accepted Answer

This statement is true for a s

Question 11

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
  
-Refer to the figure above.A tariff of ________ would be purely protective.

Accepted Answer

A) $0 
B) $5 
C) $8 
D) $10 
A) $0 
B) $5 
C) $8 
D) $10

Question 12

An increase in the tariff on semiconductors lowers the effective rate of protection of computer producers.

Accepted Answer

A) True 
 B)False

Question 13

Export tariffs are generally supported by business interests.

Accepted Answer

A) True 
 B)False

Question 14

All countries tend to have about the same tariff levels.

Accepted Answer

A) True 
 B)False

Question 15

In order to provide alternatives to drug-crop production,the Andean Trade Preference Act (ATPA)was created,providing Bolivia,Colombia,Ecuador,and Peru tariff free access to U.S.markets for many goods.

Accepted Answer

A) True 
 B)False

Question 16

Examples from the United States suggest that the cost to consumers per job saved in highly protected industries is low.

Accepted Answer

A) True 
 B)False

Question 17

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
  
-Refer to the figure above.Domestic producers gain ________ because of the tariff.

Accepted Answer

A) $5 
B) $62,500 
C) $15 
D) $125,000 
A) $5 
B) $62,500 
C) $15 
D) $125,000

Question 18

Deadweight costs of tariffs equal the sum of net changes in consumer and producer surplus brought about by the tariff.

Accepted Answer

A) True 
 B)False

Question 19

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
  
-Refer to the figure above.With the tariff,the government collects

Accepted Answer

A) $50,000. 
B) $60,000. 
C) $100,000. 
D) $220,000. 
A) $50,000. 
B) $60,000. 
C) $100,000. 
D) $220,000.

Question 20

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
  
-Refer to the figure above.With free trade,the total quantity of imports would equal

Accepted Answer

A) 10,000 units. 
B) 20,000 units. 
C) 22,000 units. 
D) 30,000 units. 
A) 10,000 units. 
B) 20,000 units. 
C) 22,000 units. 
D) 30,000 units.

A tariff can ________ raise a country's welfare.

Write an essay on the gains from free international trade.

A country gains from international trade if its post-trade ________ point lies outside its production possibility frontier.

Tariffs tend to escalate with stages of processing.

________ gains from trade refer to the situation where,over time,international trade leads to an outward shift in a country's production possibility frontier.

Using a demand and supply diagram,illustrate the effects of a tariff on imports.In particular,show the effects on domestic production,domestic consumption,imports,prices,consumer welfare,producer welfare,government revenue,and overall economic welfare.

Most tariffs have

A country can never raise its standard of living by imposing a tariff.

The increase in food prices around the world at the end of the 2000s decade led several developing countries to impose export tariffs on which of the following exports?

Tariffs can never raise a country's standard of living.True or false? Explain carefully.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.A tariff of ________ would be purely protective.

An increase in the tariff on semiconductors lowers the effective rate of protection of computer producers.

Export tariffs are generally supported by business interests.

All countries tend to have about the same tariff levels.

In order to provide alternatives to drug-crop production,the Andean Trade Preference Act (ATPA)was created,providing Bolivia,Colombia,Ecuador,and Peru tariff free access to U.S.markets for many goods.

Examples from the United States suggest that the cost to consumers per job saved in highly protected industries is low.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.Domestic producers gain ________ because of the tariff.

Deadweight costs of tariffs equal the sum of net changes in consumer and producer surplus brought about by the tariff.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.With the tariff,the government collects

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.With free trade,the total quantity of imports would equal

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters

Exam 6: Tariffs

A tariff can ________ raise a country's welfare.

Write an essay on the gains from free international trade.

A country gains from international trade if its post-trade ________ point lies outside its production possibility frontier.

Tariffs tend to escalate with stages of processing.

________ gains from trade refer to the situation where,over time,international trade leads to an outward shift in a country's production possibility frontier.

Using a demand and supply diagram,illustrate the effects of a tariff on imports.In particular,show the effects on domestic production,domestic consumption,imports,prices,consumer welfare,producer welfare,government revenue,and overall economic welfare.

Most tariffs have

A country can never raise its standard of living by imposing a tariff.

The increase in food prices around the world at the end of the 2000s decade led several developing countries to impose export tariffs on which of the following exports?

Tariffs can never raise a country's standard of living.True or false? Explain carefully.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.A tariff of ________ would be purely protective.

An increase in the tariff on semiconductors lowers the effective rate of protection of computer producers.

Export tariffs are generally supported by business interests.

All countries tend to have about the same tariff levels.

In order to provide alternatives to drug-crop production,the Andean Trade Preference Act (ATPA)was created,providing Bolivia,Colombia,Ecuador,and Peru tariff free access to U.S.markets for many goods.

Examples from the United States suggest that the cost to consumers per job saved in highly protected industries is low.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.Domestic producers gain ________ because of the tariff.

Deadweight costs of tariffs equal the sum of net changes in consumer and producer surplus brought about by the tariff.

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.With the tariff,the government collects

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.With free trade,the total quantity of imports would equal

An Introduction to International Trade

Tools of Analysis for International Trade Models

The Classical Model of International Trade

The Heckscher-Ohlin Model

Tests of Trade Models: the Leontief Paradox and Its Aftermath

Nontariff Barriers and Arguments for Protection

Commercial Policy: History and Practice

Preferential Trade Agreements

International Trade and Economic Growth

The Balance of Payments

The Foreign Exchange Market

International Monetary Systems

Exchange Rates in the Short Run

Exchange Rates in the Long Run

Theories of the Current Account Balance

Open Economy Macroeconomics

International Banking, debt and Risk

Filters