Question 1

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 2

A good is produced using $160 in imported inputs.The current domestic price of the good is $200.For each of the following cases,find the level of effective protection.
a.The nominal tariff rate on the good is 10%,and there is no tariff on the inputs.
b.The nominal tariff rate on the good is 10%,and there is a 10% tariff on the inputs.
c.The nominal tariff rate on the good is 0%,and there is a 10% tariff on the inputs.

Accepted Answer

The answer of A good is produced using $160 in...

Question 3

A tariff in a large country

Accepted Answer

A) will not benefit the country or the world. 
B) will benefit the country but not the world. 
C) will benefit the world but not the country. 
D) may benefit the country but not the world. 
A) will not benefit the country or the world. 
B) will benefit the country but not the world. 
C) will benefit the world but not the country. 
D) may benefit the country but not the world.

Question 4

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

Question 5

In general,for the last 50 years tariff rates around the world have been

Accepted Answer

A) rising 
B) falling 
C) relatively unchanged 
D) volatile - sometimes rising and sometimes falling quite dramatically 
A) rising 
B) falling 
C) relatively unchanged 
D) volatile - sometimes rising and sometimes falling quite dramatically

Question 6

Explain the redistribution effects of a tariff.

Accepted Answer

A tariff increases the price of imports

Question 7

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

Question 8

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 9

The optimum tariff is the tariff rate that

Accepted Answer

A) saved the most domestic jobs 
B) generates the largest tax revenue 
C) maximizes domestic production 
D) maximizes the net benefit from improving the improvement in the terms of trade relative to loss from the reduction in the volume of trade 
A) saved the most domestic jobs 
B) generates the largest tax revenue 
C) maximizes domestic production 
D) maximizes the net benefit from improving the improvement in the terms of trade relative to loss from the reduction in the volume of trade

Question 10

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

The imposition of an import tariff by a large nation:

A tariff in a large country

Which of the following statements is incorrect?

In general,for the last 50 years tariff rates around the world have been

Explain the redistribution effects of a tariff.

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

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

The optimum tariff is the tariff rate that

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

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 Heckscher-Ohlin 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

The Income Adjustment Mechanism and Synthesis of Automatic

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: Economic Growth and International Trade

The imposition of an import tariff by a large nation:

A tariff in a large country

Which of the following statements is incorrect?

In general,for the last 50 years tariff rates around the world have been

Explain the redistribution effects of a tariff.

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

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

The optimum tariff is the tariff rate that

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

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 Heckscher-Ohlin 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

The Income Adjustment Mechanism and Synthesis of Automatic

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