Exam 56: International Trade Restrictions

Which of the following probably best explains why trade restrictions are imposed even if the costs to consumers are greater than the benefits to protected industries?

A monopoly exists when there is only one producer in an industry, and no close substitutes for the product exist.

When the world price of the traded good is lower than the domestic no-trade equilibrium price, free trade causes domestic production to fall and domestic consumption to rise.

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3 In Figure 35.3, with an import quota of 30 gallons of corn syrup, what is the new equilibrium quantity demanded?

The total tariff revenue to the government of an imported good is found by adding the tariff to the quantity of the good imported.

Which of the following tools of commercial policy yields a revenue to the government?

The abbreviation GATT stands for:

Every country imposes tariffs on at least some imports.

The figure below shows the demand (D)and supply (S)curves of corn syrups. Figure 35.3 In Figure 35.3, what are the equilibrium price and quantity in the absence of trade?

International trade on the basis of comparative advantage maximizes world output and allows consumers to access better-quality products at lower prices than would be available in the domestic market alone.

In the light of the infant industry argument, identify the industry which is likely to have substantially high initial costs.

Which of the following countries is forbidden to impose export tariff by its constitution?

Developing countries often justify imposition of tariffs because:

The figure given below depicts the negatively sloped demand and positively sloped supply curves of wheat in a country. Figure 35.2 In Figure 35.2, if the world price of wheat is $25 and a $10 tariff is imposed:

The effect of an import quota on the domestic market is to shift the:

A customs union is an organization of nations whose members:

Domestic firms often claim that foreign firms have an unfair advantage because foreign workers are willing to work for very low wages.

Typically, restrictions to "save domestic jobs" simply redistribute jobs by creating:

The basic difference between a tariff and quota is that:

One of the negative impacts of export subsidy is that: