Chap013

Chap013 - Chapter 13 - The Instruments of Trade Policy...

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Chapter 13 - The Instruments of Trade Policy Chapter 13 The Instruments of Trade Policy Multiple Choice Questions 1. Which of the following is NOT an example of a nontariff barrier to the free flow of goods and services in accordance with comparative advantage? a. Import quotas b. Government procurement provisions that favor home products C . Specific duty of $1.00 per unit on each imported item d. Voluntary export quotas (VERs) 2. The 2007 U.S. MFN/normal trade relations tariff on refills for ball point pens was 0.4 per refill 2.7 percent of the value of the refill. This is an example of __________. a. A specific tariff b. An ad valorem tariff C . A combination of a specific tariff and an ad valorem tariff d. A nontariff barrier 3. An import quota specifies the __________ amount of a good that can be imported into a country; a step to becoming more protectionist would involve __________ in the quota. A . Maximum; a reduction b. Maximum; an enlargement c. Minimum; a reduction d. Minimum; an enlargement 4. Other things equal, which one of the following will cause an increase in the effective rate of protection (ERP) in the automobile industry? a. A decrease in the nominal tariff rate on automobiles b. An increase in the nominal tariff rates on imported inputs used in making automobiles c. An increase in the world price of imported inputs used in making automobiles D . A decrease in the nominal tariff rates on imported inputs used in making automobiles 13-1
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Chapter 13 - The Instruments of Trade Policy 5. Which one of the following is NOT an example of making a trade instrument more restrictive against imports, other things equal? a. A decrease in the size of an import quota
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Chap013 - Chapter 13 - The Instruments of Trade Policy...

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