Question 1

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 2

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.?W.
Figure 4.2. Import Tariff Levied by a "Large" Country
  
-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 3

Should Canada impose a tariff on imports,one would expect Canada's:

Accepted Answer

A)  Terms of trade to improve and volume of trade to decrease 
B)  Terms of trade to worsen and volume of trade to decrease 
C)  Terms of trade to improve and volume of trade to increase 
D)  Terms of trade to worsen and volume of trade to increase 
A)  Terms of trade to improve and volume of trade to decrease 
B)  Terms of trade to worsen and volume of trade to decrease 
C)  Terms of trade to improve and volume of trade to increase 
D)  Terms of trade to worsen and volume of trade to increase

Question 4

When the production of a commodity does not utilize imported inputs,the effective tariff rate on the commodity:

Accepted Answer

A)  Exceeds the nominal tariff rate on the commodity 
B)  Equals the nominal tariff rate on the commodity 
C)  Is less than the nominal tariff rate on the commodity 
D)  None of the above 
A)  Exceeds the nominal tariff rate on the commodity 
B)  Equals the nominal tariff rate on the commodity 
C)  Is less than the nominal tariff rate on the commodity 
D)  None of the above

Question 5

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.?W.
Figure 4.2. Import Tariff Levied by a "Large" Country
  
-Refer to Exhibit 4.1.In the absence of 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 6

For a "small" country,a tariff raises the domestic price of an imported product by the full amount of the duty.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The principal benefit of tariff protection goes to:

Accepted Answer

A)  Domestic consumers of the good produced 
B)  Domestic producers of the good produced 
C)  Foreign producers of the good produced 
D)  Foreign consumers of the good produced 
A)  Domestic consumers of the good produced 
B)  Domestic producers of the good produced 
C)  Foreign producers of the good produced 
D)  Foreign consumers of the good produced

Question 9

With a compound tariff,a domestic importer of an automobile might be required to pay a duty of $200 plus 4 percent of the value of the automobile.

Accepted Answer

A) True 
 B)False

Question 10

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 11

To protect domestic producers from foreign competition,the U.S.government levies both import tariffs and export tariffs.

Accepted Answer

A) True 
 B)False

Question 12

If we consider the impact on both consumers and producers,then protection of the steel industry is:

Accepted Answer

A)  In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania 
B)  In the interest of the United States as a whole and in the interest of the state of Pennsylvania 
C)  Not in the interest of the United States as a whole, but it might be in the interest of the state of Pennsylvania 
D)  Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania 
A)  In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania 
B)  In the interest of the United States as a whole and in the interest of the state of Pennsylvania 
C)  Not in the interest of the United States as a whole, but it might be in the interest of the state of Pennsylvania 
D)  Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania

Question 13

Suppose that the United States eliminates its tariff on steel imports,permitting foreign-produced steel to enter the U.S.market.Steel prices to U.S.consumers would be expected to:

Accepted Answer

A)  Increase, and the foreign demand for U.S. exports would increase 
B)  Decrease, and the foreign demand for U.S. exports would increase 
C)  Increase, and the foreign demand for U.S. exports would decrease 
D)  Decrease, and the foreign demand for U.S. exports would decrease 
A)  Increase, and the foreign demand for U.S. exports would increase 
B)  Decrease, and the foreign demand for U.S. exports would increase 
C)  Increase, and the foreign demand for U.S. exports would decrease 
D)  Decrease, and the foreign demand for U.S. exports would decrease

Question 14

As long as it is assumed that a nation accounts for a negligible portion of international trade,its levying an import tariff necessarily increases its overall welfare.

Accepted Answer

A) True 
 B)False

Question 15

An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.

Accepted Answer

A) True 
 B)False

Question 16

According to the tariff escalation effect,industrial countries apply low tariffs to imports of finished goods and high tariffs to imports of raw materials.

Accepted Answer

A) True 
 B)False

Question 17

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.?W.
Figure 4.2. Import Tariff Levied by a "Large" Country
  
-Suppose that the production of $500,000 worth of steel in the United States requires $100,000 worth of iron ore.The U.S.nominal tariff rates for importing these goods are 15 percent for steel and 5 percent for iron ore.Given this information,the effective rate of protection for the U.S.steel industry is approximately:

Accepted Answer

A)  6 percent 
B)  12 percent 
C)  18 percent 
D)  24 percent 
A)  6 percent 
B)  12 percent 
C)  18 percent 
D)  24 percent

Question 18

Which trade policy results in the government levying a "two-tier" tariff on imported goods?

Accepted Answer

A)  Tariff quota 
B)  Nominal tariff 
C)  Effective tariff 
D)  Revenue tariff 
A)  Tariff quota 
B)  Nominal tariff 
C)  Effective tariff 
D)  Revenue tariff

Question 19

With a specific tariff,the degree of protection afforded domestic producers varies directly with changes in import prices.

Accepted Answer

A) True 
 B)False

Question 20

Of the many arguments in favor of tariffs,the one that has enjoyed the most significant economic justification has been the:

Accepted Answer

A)  Infant industry argument 
B)  Cheap foreign labor argument 
C)  Balance of payments argument 
D)  Domestic living standard argument 
A)  Infant industry argument 
B)  Cheap foreign labor argument 
C)  Balance of payments argument 
D)  Domestic living standard argument

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.

Should Canada impose a tariff on imports,one would expect Canada's:

When the production of a commodity does not utilize imported inputs,the effective tariff rate on the commodity:

For a "small" country,a tariff raises the domestic price of an imported product by the full amount of the duty.

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

The principal benefit of tariff protection goes to:

With a compound tariff,a domestic importer of an automobile might be required to pay a duty of $200 plus 4 percent of the value of the automobile.

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

To protect domestic producers from foreign competition,the U.S.government levies both import tariffs and export tariffs.

If we consider the impact on both consumers and producers,then protection of the steel industry is:

Suppose that the United States eliminates its tariff on steel imports,permitting foreign-produced steel to enter the U.S.market.Steel prices to U.S.consumers would be expected to:

As long as it is assumed that a nation accounts for a negligible portion of international trade,its levying an import tariff necessarily increases its overall welfare.

An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.

According to the tariff escalation effect,industrial countries apply low tariffs to imports of finished goods and high tariffs to imports of raw materials.

Which trade policy results in the government levying a "two-tier" tariff on imported goods?

With a specific tariff,the degree of protection afforded domestic producers varies directly with changes in import prices.

Of the many arguments in favor of tariffs,the one that has enjoyed the most significant economic justification has been the:

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

Balance-of-payments Adjustments

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 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.

Should Canada impose a tariff on imports,one would expect Canada's:

When the production of a commodity does not utilize imported inputs,the effective tariff rate on the commodity:

For a "small" country,a tariff raises the domestic price of an imported product by the full amount of the duty.

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

The principal benefit of tariff protection goes to:

With a compound tariff,a domestic importer of an automobile might be required to pay a duty of $200 plus 4 percent of the value of the automobile.

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

To protect domestic producers from foreign competition,the U.S.government levies both import tariffs and export tariffs.

If we consider the impact on both consumers and producers,then protection of the steel industry is:

Suppose that the United States eliminates its tariff on steel imports,permitting foreign-produced steel to enter the U.S.market.Steel prices to U.S.consumers would be expected to:

As long as it is assumed that a nation accounts for a negligible portion of international trade,its levying an import tariff necessarily increases its overall welfare.

An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.

According to the tariff escalation effect,industrial countries apply low tariffs to imports of finished goods and high tariffs to imports of raw materials.

Which trade policy results in the government levying a "two-tier" tariff on imported goods?

With a specific tariff,the degree of protection afforded domestic producers varies directly with changes in import prices.

Of the many arguments in favor of tariffs,the one that has enjoyed the most significant economic justification has been the:

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

Balance-of-payments Adjustments

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