Compared to a tariff that limits imports to the same

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3.Compared to a tariff that limits imports to the same quantity, an import quota: a.Always reduces national economic welfare by less than the tariff. b.Always reduces national economic welfare by more than the tariff. c.Always reduces national economic welfare by exactly the same as the tariff. d.Can reduce national economic welfare by exactly the same as the tariff.
4.Trade protection generally reduces the proportion of imported inputs relative to domestically supplied components in the production of finished goods. As a result:
5.The opportunity to take advantage of economies of scale by removing tariffs:
Exam #2 (Spring 2015) 3/11 6.The U.S. and Canada are “large” wheat exporting countries. China and India are “large” wheat importing countries. Suppose that the U.S. government now provides an export subsidy to its wheat producers. Then:
7.By adopting ________ policies, governments can aid domestic companies in capturing economic profits from foreign competitors. a.strategic trade b.export subsidies c.countervailing duties d.international dumping e.production subsidies for exported goods
8.Developing countries that emphasize the production of raw materials and/or agricultural goods may realize a long-run deterioration in their international terms of trade because of:

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