Question 1

A limitation of a specific tariff is that it provides a constant level of protection for domestic commodities regardless of fluctuations in their prices over time.

Accepted Answer

A) True 
 B)False

Question 2

Figure 4.2.Import Tariff Levied by a "Large" Country  
-Consider Figure 4.2.With free trade,the United States achieves market equilibrium at a price of $____.At this price,____ tons of steel are produced by U.S.firms,____ tons are bought by U.S.buyers,and ____ tons are imported.

Accepted Answer

A)  $450,5 tons,60 tons,55 tons 
B)  $475,10 tons,50 tons,40 tons 
C)  $525,5 tons,60 tons,55 tons 
D)  $630,30 tons,30 tons,0 tons 
A)  $450,5 tons,60 tons,55 tons 
B)  $475,10 tons,50 tons,40 tons 
C)  $525,5 tons,60 tons,55 tons 
D)  $630,30 tons,30 tons,0 tons

Question 3

A tax of 20 cents per unit of imported cheese would be an example of:

Accepted Answer

A)  Compound tariff 
B)  Effective tariff 
C)  Ad valorem tariff 
D)  Specific tariff 
A)  Compound tariff 
B)  Effective tariff 
C)  Ad valorem tariff 
D)  Specific tariff

Question 4

Refer to Exhibit 4.2.The tariff's redistribution effect equals $7,000.

Accepted Answer

A) True 
 B)False

Question 5

A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate.

Accepted Answer

A) True 
 B)False

Question 6

Figure 4.3 Domestic Market for Gasoline in the United States  
-Figure 4.3 represents the domestic market for gasoline in the United States.What is the producer surplus in this market?

Accepted Answer

A)  60 gallons of gasoline 
B)  $120 
C)  $60 
D)  $3 
A)  60 gallons of gasoline 
B)  $120 
C)  $60 
D)  $3

Question 7

Figure 4.2.Import Tariff Levied by a "Large" Country  
-According to Figure 4.2,the tariff's terms-of-trade effect equals:

Accepted Answer

A)  $300 
B)  $400 
C)  $500 
D)  $600 
A)  $300 
B)  $400 
C)  $500 
D)  $600

Question 8

Figure 4.4 Market for Gasoline in a Small Nation  
-Figure 4.4 represents the market for gasoline in a small nation.The free trade world price of gasoline is $3.50.Suppose this small nation imposes a tariff on gasoline of $.50 per gallon.The change in consumer surplus would be

Accepted Answer

A)  $15 
B)  $12.50 
C)  $27.50 
D)  $57.50 
A)  $15 
B)  $12.50 
C)  $27.50 
D)  $57.50

Question 9

-Consider Table 4.1.Prior to the tariff,the total price of imported VCRs is:

Accepted Answer

A)  $150 
B)  $200 
C)  $225 
D)  $235 
A)  $150 
B)  $200 
C)  $225 
D)  $235

Question 10

When material inputs enter a country at a very low duty while the final imported product is protected by a high duty,the result tends to be a high rate of protection for domestic producers of the final product.

Accepted Answer

A) True 
 B)False

Question 11

Producer surplus is the revenue producers receive over and above the minimum necessary for production.

Accepted Answer

A) True 
 B)False

Question 12

Unlike a specific tariff,an ad valorem tariff differentiates between commodities with different values.

Accepted Answer

A) True 
 B)False

Question 13

A "large" country,that levies a tariff on imports,cannot improve the terms at which it trades with other countries.

Accepted Answer

A) True 
 B)False

Question 14

According to Figure 4.1,the tariff results in the Mexican government collecting:

Accepted Answer

A)  $100 
B)  $120 
C)  $140 
D)  $160 
A)  $100 
B)  $120 
C)  $140 
D)  $160

Question 15

Refer to Exhibit 4.1.Under the Offshore Assembly Provision of U.S.tariff policy,the price of an imported vehicle to the U.S.consumer after the tariff has been levied is:

Accepted Answer

A)  $22,000 
B)  $23,000 
C)  $24,000 
D)  $25,000 
A)  $22,000 
B)  $23,000 
C)  $24,000 
D)  $25,000

Question 16

Assume that the United States imports televisions from Taiwan at a price of $300 per unit and that these televisions are subject to an import tariff of 25 percent.Also assume that U.S.components are used in the televisions assembled by Taiwan and that these components have a value of $100.Under the Offshore Assembly Provision of U.S.tariff policy,the price of an imported television to the U.S.consumer after the tariff has been levied is $375

Accepted Answer

A) True 
 B)False

Question 17

Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports above this quantity?

Accepted Answer

A)  Tariff quota 
B)  Import tariff 
C)  Specific tariff 
D)  Ad valorem tariff 
A)  Tariff quota 
B)  Import tariff 
C)  Specific tariff 
D)  Ad valorem tariff

Question 18

A tariff can be thought of as a tax on imported goods.

Accepted Answer

A) True 
 B)False

Question 19

If a tariff reduces the quantity of Japanese autos imported by the United States,over time it reduces the ability of Japan to import goods from the United States.

Accepted Answer

A) True 
 B)False

Question 20

Figure 4.3 Domestic Market for Gasoline in the United States  
-Figure 4.3 represents the domestic market for gasoline in the United States.What is the consumer surplus in this market?

Accepted Answer

A)  60 gallons of gasoline 
B)  $120 
C)  $60 
D)  $3 
A)  60 gallons of gasoline 
B)  $120 
C)  $60 
D)  $3

A limitation of a specific tariff is that it provides a constant level of protection for domestic commodities regardless of fluctuations in their prices over time.

Figure 4.2.Import Tariff Levied by a "Large" Country -Consider Figure 4.2.With free trade,the United States achieves market equilibrium at a price of $.At this price, tons of steel are produced by U.S.firms, tons are bought by U.S.buyers,and tons are imported.

A tax of 20 cents per unit of imported cheese would be an example of:

Refer to Exhibit 4.2.The tariff's redistribution effect equals $7,000.

A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate.

Figure 4.3 Domestic Market for Gasoline in the United States -Figure 4.3 represents the domestic market for gasoline in the United States.What is the producer surplus in this market?

Figure 4.2.Import Tariff Levied by a "Large" Country -According to Figure 4.2,the tariff's terms-of-trade effect equals:

Figure 4.4 Market for Gasoline in a Small Nation -Figure 4.4 represents the market for gasoline in a small nation.The free trade world price of gasoline is $3.50.Suppose this small nation imposes a tariff on gasoline of $.50 per gallon.The change in consumer surplus would be

-Consider Table 4.1.Prior to the tariff,the total price of imported VCRs is:

When material inputs enter a country at a very low duty while the final imported product is protected by a high duty,the result tends to be a high rate of protection for domestic producers of the final product.

Producer surplus is the revenue producers receive over and above the minimum necessary for production.

Unlike a specific tariff,an ad valorem tariff differentiates between commodities with different values.

A "large" country,that levies a tariff on imports,cannot improve the terms at which it trades with other countries.

According to Figure 4.1,the tariff results in the Mexican government collecting:

Refer to Exhibit 4.1.Under the Offshore Assembly Provision of U.S.tariff policy,the price of an imported vehicle to the U.S.consumer after the tariff has been levied is:

Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports above this quantity?

A tariff can be thought of as a tax on imported goods.

If a tariff reduces the quantity of Japanese autos imported by the United States,over time it reduces the ability of Japan to import goods from the United States.

Figure 4.3 Domestic Market for Gasoline in the United States -Figure 4.3 represents the domestic market for gasoline in the United States.What is the consumer surplus in this market?

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange-Rate Determination

Mechanisms of International Adjustment

Exchange-Rate Adjustments and the Balance of Payments

Exchange-Rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters

Exam 4: Tariffs

A limitation of a specific tariff is that it provides a constant level of protection for domestic commodities regardless of fluctuations in their prices over time.

Figure 4.2.Import Tariff Levied by a "Large" Country -Consider Figure 4.2.With free trade,the United States achieves market equilibrium at a price of $____.At this price,____ tons of steel are produced by U.S.firms,____ tons are bought by U.S.buyers,and ____ tons are imported.

A tax of 20 cents per unit of imported cheese would be an example of:

Refer to Exhibit 4.2.The tariff's redistribution effect equals $7,000.

A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate.

Figure 4.3 Domestic Market for Gasoline in the United States -Figure 4.3 represents the domestic market for gasoline in the United States.What is the producer surplus in this market?

Figure 4.2.Import Tariff Levied by a "Large" Country -According to Figure 4.2,the tariff's terms-of-trade effect equals:

Figure 4.4 Market for Gasoline in a Small Nation -Figure 4.4 represents the market for gasoline in a small nation.The free trade world price of gasoline is $3.50.Suppose this small nation imposes a tariff on gasoline of $.50 per gallon.The change in consumer surplus would be

-Consider Table 4.1.Prior to the tariff,the total price of imported VCRs is:

When material inputs enter a country at a very low duty while the final imported product is protected by a high duty,the result tends to be a high rate of protection for domestic producers of the final product.

Producer surplus is the revenue producers receive over and above the minimum necessary for production.

Unlike a specific tariff,an ad valorem tariff differentiates between commodities with different values.

A "large" country,that levies a tariff on imports,cannot improve the terms at which it trades with other countries.

According to Figure 4.1,the tariff results in the Mexican government collecting:

Refer to Exhibit 4.1.Under the Offshore Assembly Provision of U.S.tariff policy,the price of an imported vehicle to the U.S.consumer after the tariff has been levied is:

Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and applies a higher tariff rate to imports above this quantity?

A tariff can be thought of as a tax on imported goods.

If a tariff reduces the quantity of Japanese autos imported by the United States,over time it reduces the ability of Japan to import goods from the United States.

Figure 4.3 Domestic Market for Gasoline in the United States -Figure 4.3 represents the domestic market for gasoline in the United States.What is the consumer surplus in this market?

The International Economy and Globalization

Foundations of Modern Trade Theory: Comparative Advantage

Sources of Comparative Advantage

Nontariff Trade Barriers

Trade Regulations and Industrial Policies

Trade Policies for the Developing Nations

Regional Trading Arrangements

International Factor Movements and Multinational Enterprises

The Balance of Payments

Foreign Exchange

Exchange-Rate Determination

Mechanisms of International Adjustment

Exchange-Rate Adjustments and the Balance of Payments

Exchange-Rate Systems and Currency Crises

Macroeconomic Policy in an Open Economy

International Banking: Reserves, Debt, and Risk

Filters

Figure 4.2.Import Tariff Levied by a "Large" Country -Consider Figure 4.2.With free trade,the United States achieves market equilibrium at a price of $.At this price, tons of steel are produced by U.S.firms, tons are bought by U.S.buyers,and tons are imported.