Question 1

Which of the following countries imposes significant tariffs on its agricultural exports?

Accepted Answer

A) Argentina 
B) The U.S. 
C) Canada 
D) France. 
A) Argentina 
B) The U.S. 
C) Canada 
D) France.

Question 2

The deadweight costs of an export tariff have similar interpretations to those of an import tariff.

Accepted Answer

A) True 
 B)False

Question 3

Why do governments generally prefer to impose tariffs over quotas?

Accepted Answer

Although both types of barriers of trade

Question 4

Tariff levels in developing countries tend to be ________ tariff levels in developed countries.

Accepted Answer

A) lower than 
B) about equal to 
C) higher than 
D) there is no general pattern 
A) lower than 
B) about equal to 
C) higher than 
D) there is no general pattern

Question 5

The United States imposes tariffs

Accepted Answer

A) only on imports. 
B) only on exports. 
C) on both imports and exports. 
D) on imports, exports, and nontraded goods. 
A) only on imports. 
B) only on exports. 
C) on both imports and exports. 
D) on imports, exports, and nontraded goods.

Question 6

Ad valorem tariffs are collected as

Accepted Answer

A) fixed amounts of money per unit traded. 
B) a percentage of the price of the product. 
C) a percentage of the quantity of imports. 
D) All of the above. 
A) fixed amounts of money per unit traded. 
B) a percentage of the price of the product. 
C) a percentage of the quantity of imports. 
D) All of the above.

Question 7

Static gains from trade come about because trade causes consumers and producers to face a different set of prices.

Accepted Answer

A) True 
 B)False

Question 8

Describe with a graph the effects of an export tariff z. Include in your graph the effect on local prices,exports and local production,as well as the changes in consumer and producer surplus and corresponding changes in deadweight s.

Accepted Answer

@#IMG-DLM& 
Assuming that the government imposed a

Question 9

If Canada imposes a tariff on bananas and if none are grown in Canada,this tariff has

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 10

Free trade is better than autarky for a small country.

Accepted Answer

A) True 
 B)False

Question 11

A prohibitive tariff has

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 12

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
  
-Refer to the figure above.The deadweight cost of the tariff equals

Accepted Answer

A) $10,000. 
B) $25,000. 
C) $50,000. 
D) cannot be calculated without further information. 
A) $10,000. 
B) $25,000. 
C) $50,000. 
D) cannot be calculated without further information.

Question 13

Following the imposition of the Smoot-Hawley tariff

Accepted Answer

A) international trade continued to expand. 
B) more than 40 countries imposed higher tariffs of their own. 
C) employment in the United States expanded rapidly. 
D) Two of the above. 
A) international trade continued to expand. 
B) more than 40 countries imposed higher tariffs of their own. 
C) employment in the United States expanded rapidly. 
D) Two of the above.

Question 14

In today's world,many countries impose tariffs

Accepted Answer

A) only on imports. 
B) only on exports. 
C) on both imports and exports. 
D) on imports, exports, and nontraded goods. 
A) only on imports. 
B) only on exports. 
C) on both imports and exports. 
D) on imports, exports, and nontraded goods.

Question 15

Free trade is better than protection for a small country.

Accepted Answer

A) True 
 B)False

Question 16

Specific tariffs are collected as

Accepted Answer

A) fixed amounts of money per unit traded. 
B) a percentage of the price of the product. 
C) a percentage of the quantity of imports. 
D) All of the above. 
A) fixed amounts of money per unit traded. 
B) a percentage of the price of the product. 
C) a percentage of the quantity of imports. 
D) All of the above.

Question 17

As of 2008,with which of the following countries did the U.S.not have a preferential trade agreement?

Accepted Answer

A) Mexico. 
B) Canada. 
C) Russia. 
D) Israel. 
A) Mexico. 
B) Canada. 
C) Russia. 
D) Israel.

Question 18

If a tariff on bikes causes domestic bike prices to rise by 20% and domestic value added in the domestic bike industry to rise by 30%,then

Accepted Answer

A) the nominal rate of protection of bikes is 20%. 
B) the effective rate of protection of bikes is 30%. 
C) the effective rate of protection is higher than the nominal rate. 
D) All of the above. 
A) the nominal rate of protection of bikes is 20%. 
B) the effective rate of protection of bikes is 30%. 
C) the effective rate of protection is higher than the nominal rate. 
D) All of the above.

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 free trade,the total value of imports would equal

Accepted Answer

A) $10. 
B) $100,000. 
C) $200,000 
D) $300,000. 
A) $10. 
B) $100,000. 
C) $200,000 
D) $300,000.

Question 20

The United States charges

Accepted Answer

A) the same tariff rates on goods from all countries. 
B) lower tariff rates on goods from countries with most favored nation status. 
C) low or zero tariffs on goods from certain developing countries. 
D) Both B and C. 
A) the same tariff rates on goods from all countries. 
B) lower tariff rates on goods from countries with most favored nation status. 
C) low or zero tariffs on goods from certain developing countries. 
D) Both B and C.

Which of the following countries imposes significant tariffs on its agricultural exports?

The deadweight costs of an export tariff have similar interpretations to those of an import tariff.

Why do governments generally prefer to impose tariffs over quotas?

Tariff levels in developing countries tend to be ________ tariff levels in developed countries.

The United States imposes tariffs

Ad valorem tariffs are collected as

Static gains from trade come about because trade causes consumers and producers to face a different set of prices.

Describe with a graph the effects of an export tariff z. Include in your graph the effect on local prices,exports and local production,as well as the changes in consumer and producer surplus and corresponding changes in deadweight s.

If Canada imposes a tariff on bananas and if none are grown in Canada,this tariff has

Free trade is better than autarky for a small country.

A prohibitive tariff has

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.The deadweight cost of the tariff equals

Following the imposition of the Smoot-Hawley tariff

In today's world,many countries impose tariffs

Free trade is better than protection for a small country.

Specific tariffs are collected as

As of 2008,with which of the following countries did the U.S.not have a preferential trade agreement?

If a tariff on bikes causes domestic bike prices to rise by 20% and domestic value added in the domestic bike industry to rise by 30%,then

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 value of imports would equal

The United States charges

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

Which of the following countries imposes significant tariffs on its agricultural exports?

The deadweight costs of an export tariff have similar interpretations to those of an import tariff.

Why do governments generally prefer to impose tariffs over quotas?

Tariff levels in developing countries tend to be ________ tariff levels in developed countries.

The United States imposes tariffs

Ad valorem tariffs are collected as

Static gains from trade come about because trade causes consumers and producers to face a different set of prices.

Describe with a graph the effects of an export tariff z. Include in your graph the effect on local prices,exports and local production,as well as the changes in consumer and producer surplus and corresponding changes in deadweight s.

If Canada imposes a tariff on bananas and if none are grown in Canada,this tariff has

Free trade is better than autarky for a small country.

A prohibitive tariff has

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s. -Refer to the figure above.The deadweight cost of the tariff equals

Following the imposition of the Smoot-Hawley tariff

In today's world,many countries impose tariffs

Free trade is better than protection for a small country.

Specific tariffs are collected as

As of 2008,with which of the following countries did the U.S.not have a preferential trade agreement?

If a tariff on bikes causes domestic bike prices to rise by 20% and domestic value added in the domestic bike industry to rise by 30%,then

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 value of imports would equal

The United States charges

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