chapter 8 - Chapter 8: The Instruments of Trade Policy...

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Chapter 8: The Instruments of Trade Policy Multiple Choice Questions 1. Specific tariffs are A. import taxes stated in specific legal statutes. B. import taxes calculated as a fixed charge for each unit of imported goods. C. import taxes calculated as a fraction of the value of the imported goods. D. the same as import quotas. E. None of the above. Answer: B 2. Ad valorem tariffs are A. import taxes stated in ads in industry publications. B. import taxes calculated as a fixed charge for each unit of imported goods. A. import taxes calculated as a fraction of the value of the imported goods. B. the same as import quotas C. None of the above. Answer: C 3. The excess supply curve of a product we (H) import from foreign countries (F) increases as A. excess demand of country H increases. B. excess demand of country F increases. C. excess supply of country H increases. D. excess supply of country F increases. E. None of the above. Answer: D 4. If a good is imported into (large) country H from country F, then the imposition of a tariff in country H A. raises the price of the good in both countries ("the "Law of One Price"). B. raises the price in country H and cannot affect its price in country F. C. lowers the price of the good in both countries. D. lowers the price of the good in H and could raise it in F. E. raises the price of the good in H and lowers it in F.
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Answer: E 5. If a good is imported into (small) country H from country F, then the imposition of a tariff In country H A. raises the price of the good in both countries ("the "Law of One Price"). B. raises the price in country H and cannot affect its price in country F. C. lowers the price of the good in both countries. D. lowers the price of the good in H and could raise it in F. E. raises the price of the good in H and lowers it in F. Answer: B 6. If a good is imported into (large) country H from country F, then the imposition of a tariff in country H in the presence of the Metzler Paradox, A. raises the price of the good in both countries ("the "Law of One Price"). B. raises the price in country H and cannot affect its price in country F. C. lowers the price of the good in both countries. D. lowers the price of the good in H and could raise it in F. E. raises the price of the good in H and lowers it in F. Answer: C 7. The effective rate of protection measures A. the "true" ad valorum value of a tariff. B. the quota equivalent value of a tariff. C. the efficiency with which the tariff is collected at the customhouse. D. the protection given by the tariff to domestic value added. E. None of the above. Answer: D 8. If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductor to imported components, then the effective rate of protection in the computer industry will
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A. increase. B.
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chapter 8 - Chapter 8: The Instruments of Trade Policy...

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