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11) If a small country were to levy a tariff

Question : 11) If a small country were to levy a tariff : 1407624

 

11) If a small country were to levy a tariff on its imports then this would

A) decrease the country's economic welfare.

B) have no effect on that country's economic welfare.

C) increase the country's economic welfare.

D) change the terms of trade.

E) raise prices on its exports in other countries.

12) An increase in a country's net commodity terms of trade will

A) not always guarantee positive changes in the country's economy.

B) always increase the country's economic welfare.

C) always increase the country's real income.

D) never increase the country's quantity of exports.

E) always increase the country's production of its import competing good.

13) An import tariff will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.

A) imports; decrease; imports; increase

B) imports; increase; imports; decrease

C) exports; increase; exports; decrease

D) exports; decrease; exports; increase

E) exports; increase; imports; decrease

14) An export subsidy will cause the relative demand for ________ to ________ and the relative supply for ________ to ________.

A) exports; decrease; exports; increase

B) imports; decrease; imports; increase

C) imports; increase; imports; decrease

D) exports; increase; exports; decrease

E) exports; increase; imports; decrease

15) An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country.

A) importing; improve; benefit

B) exporting; improve; benefit

C) importing; suffer; harm

D) exporting; improve; harm

E) importing; improve; harm

16) An export subsidy will cause the terms of trade of the ________ country to ________ and will ________ the country.

A) exporting; suffer; harm

B) exporting; improve; benefit

C) importing; suffer; harm

D) importing; suffer; benefit

E) importing; improve; harm

 

 

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