Category: Tariffs

A. nominal tariff rate on the final product equals the effective tariff rate on the product
B. nominal tariff rate on the final product is greater than the effective rate on the product
C. nominal tariff rate on the final product is less than the effective tariff rate on the final product
D. None of the above

A. economic downturn and recession generally result in greater protectionism
B. because domestic consumers outnumber domestic producer’s policy markers usually enact Free-trade policies to satisfy the consumer majority:
C. When domestic exporting companies are organized, policy tends to favor freer trade
D. Policy tends to favor freer trade in countries whose imports are inputs into critical industries

A. will always
B. will never
C. can sometimes
D. None of the above

A. In the interest of the U.S as a whole but not in the interest of the state of Pennsylvania where steel mills are located
B. In the interest of the U.S as a whole and in the interest of the state of Pennsylvania
C. Not in the interest of the U.S as a whole, but it might be in the interest of the state of Pennsylvania
D. Not in the interest of the U.S as a whole, nor in the interest of the state of Pennsylvania

A. fixed amounts of money per unit traded
B. a percentage of the price of the product
C. a percentage of the quantity of imports
D. All of the above

A. the country is a small country rather than a larger country
B. its terms of trade improve enough
C. The tariff enhances the welfare of its trading partners
D. Its government’s tax revenue increases because of the tariff

A. $10
B. $15
C. $20
D. $25

A. $10,000
B. $25,000
C. $50,000
D. $75,000

A. Progressive and thus bear down on the wealthy
B. regressive and thus bear down on the poor
C. proportional and thus bear down on all consumers in the same manner
D. deflationary and thus result in reductions in the price of imports

A. $75,000
B. $100,000
C. $125,000
D. $150,000