practicetest_iei4 tariffs

practicetest_iei4 tariffs - Name: _ Class: _ Date: _...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Practice Test Chapter Fall 2007 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The imposition of tariffs on imports results in deadweight welfare losses for the home economy. These losses consist of the: a. Protective effect plus consumption effect b. Redistribution effect plus revenue effect c. Revenue effect plus protective effect d. Consumption effect plus redistribution effect ____ 2. When a government allows raw materials and other intermediate products to enter a country duty free , its tariff policy generally results in a(n): a. Effective tariff rate less than the nominal tariff rate b. Nominal tariff rate less than the effective tariff rate c. Rise in both nominal and effective tariff rates d. Fall in both nominal and effective tariff rates ____ 3. The redistribution effect of an import tariff is the transfer of income from the domestic: a. Producers to domestic buyers of the good b. Buyers to domestic producers of the good c. Buyers to the domestic government d. Government to the domestic buyers ____ 4. When the production of a commodity does not utilize imported inputs, the effective tariff rate on the commodity: 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 ____ 5. Should the home country be "large" relative to the world, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms-of-trade effect exceeds the sum of the: a. Revenue effect plus redistribution effect b. Protective effect plus revenue effect c. Consumption effect plus redistribution effect d. Protective effect plus consumption effect ____ 6. Should Canada impose a tariff on imports, one would expect Canada's: 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 ____ 7. Tariffs are not defended on the ground that they: a. Improve the terms of trade of foreign nations b. Protect jobs and reduce unemployment
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practicetest_iei4 tariffs - Name: _ Class: _ Date: _...

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