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  9.2   Costs and Benefits of a Tariff   1) If a good

Question :   9.2   Costs and Benefits of a Tariff   1) If a good : 1925443

 

9.2   Costs and Benefits of a Tariff

 

1) 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.

2) 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 does not 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.

3) If a good is imported into (large) country H from country F, then the imposition of a tariff in country H in the presence of the Metzler Paradox,

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.

4) The effective rate of protection measures

A) the "true" ad valorum value of a tariff.

B) the quota equivalent value of a tariff.

C) the efficiency with which the tariff is collected at the customhouse.

D) the protection given by the tariff to domestic value added.

E) the difference between domestic and foreign prices of the import.

5) If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry will

A) increase.

B) decrease

C) remain the same.

D) depend on whether computers are PCs or "Supercomputers."

E) no longer apply.

6) If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will

A) increase.

B) decrease

C) remain the same.

D) depend on whether computers are PCs or "Supercomputers."

E) no longer apply.

7) If a small country imposes a tariff, then

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) the world price on that item will shift.

8) The imposition of tariffs on imports results in deadweight (triangle) losses. These are

A) production and consumption distortion effects.

B) redistribution effects.

C) revenue effects

D) efficiency effects.

E) distortion of incentives.

9) When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an)

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.

E) rise in only the effective tariff rate.

10) Of the many arguments in favor of tariffs, the one that has enjoyed significant economic justification has been the

A) cheap foreign labor argument.

B) infant industry argument.

C) even playing field argument.

D) balance of payments argument

E) domestic living standard argument.

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