231_final_fall09

231_final_fall09 - Exam Name MULTIPLECHOICE. 1 Ataxof20...

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Exam Name___________________________________   MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.  1) 
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A tax of 20  cents per  unit of  imported  garlic is an  example of  a(n) 
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1)  _______  A)  a d   v a lor em  tari ff.  ef fe ct ive  protectio n tariff. 
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specific tariff.  D) 
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nominal tariff.  E) 
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None of the above.    2) 
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If a good is  imported  into (small)  country H  from country  F, then the  imposition of  a tariff In  country H 
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2)  _______  A)  l o w e r s   t h e   p r ice  of  the  go od  in  bot co unt rie s.  r ai s e th p rice of  the good  in both  countries  (the  "Law of  One  Price"). 
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raises the price of the  good in H and lowers it in F.  D) 
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raises the price in  country H and does not affect its price in country F.  E) 
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lowers the price of the  good in H and could raise it in F.    3) 
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In the  exporting  country, an  export  subsidy will 
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3)  _______  A)  h e l p   c o n s u m e r s   b u t   lo we eco no mi we lfar of  the  ex por tin co unt ry.  h el c o n s u mers and  raise the  overall  economic  welfare  of the  exporting  country. 
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hurt consumers but raise  the overall economic welfare of the exporting country.  D) 
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hurt consumers and  lower the overall economic welfare of the exporting country.  E) 
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None of the above    4) 
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The effective  rate of  protection  measures 
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4)  _______  A)  t h e   p r o t e c t i o n   giv en  by  the  tari ff  to  do me stic  val ue  ad de d.  th q u ota  equivalen t value of  a tariff. 
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the "true"  ad valorum  value of a tariff.  D) 
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the efficiency with  which the tariff is collected at the customhouse.  E) 
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None of the above.    5) 
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The  efficiency  case made  for free trade  is that as  trade  distortions  such as  tariffs are  dismantled  and  removed, 
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5)  _______  A)  d e a d w e i g h t   l o s s e s   f o r   p r o d u c ers  an co nsu me rs  wil dec rea se,  he nce  inc rea sin nat ion al  eco no mi we lfar e.  g o v e r n m e nt  ta ri ff  revenue  will  decrease,  and  therefore  national  economic  welfare  will  increase. 
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government tariff  revenue will decrease, and therefore national economic welfare will decrease.  D) 
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deadweight losses for  producers and consumers will decrease, hence decreasing national economic welfare.  E) 
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None of the above.    6) 
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The  prohibitive  tariff  is a  tariff that 
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6)  _______  A)  i s   s o   h i g h   t h a t   i t  ca use un du har to  tra de - par tne eco no mi es.  is  s lo th at  th g overnme nt  prohibits  its use  since it  would  lose an  importan t revenue  source. 
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is so high that it  eliminates imports.  D) 
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is so high that it causes  undue harm to import competing sectors.  E) 
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This note was uploaded on 05/23/2011 for the course ECON 231 taught by Professor Rus during the Fall '08 term at Waterloo.

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231_final_fall09 - Exam Name MULTIPLECHOICE. 1 Ataxof20...

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