Chapters 8&9 MC-Tariffs and trade policy-2008

Chapters 8&9 MC-Tariffs and trade policy-2008 -...

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Practice Multiple Choice Questions Chapters 8 and 9: The Instruments and the Political economy of Trade Policy 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. 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: C 3. 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. Answer: E 4. 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 5. If a small country imposes a tariff, then
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A. the producers must suffer a loss. B. the consumers must suffer a loss. C. the government revenue must suffer a loss. D. the demand curve must shift to the left. E. None of the above. Answer: B 6. The imposition of tariffs on imports results in deadweight (triangle) losses. These are A. production and consumption distortion effects. B.
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Chapters 8&9 MC-Tariffs and trade policy-2008 -...

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