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.Management Sciences
Category: Tariffs
If a country an imposes an import tariff, its welfare can improve if ?
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 tariff of ________ would be prohibitive causing imports to fall to zero?
A. $10
B. $15
C. $20
D. $25
The deadweight cost of the tariff equals ?
A. $10,000
B. $25,000
C. $50,000
D. $75,000
Concerning import tariffs of the United States empirical studies tend to conclude that these tariffs are ?
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
With the tariff the government collects?
A. $75,000
B. $100,000
C. $125,000
D. $150,000
In today’s world, most countries impose tariffs ?
A. only on imports
B. only on exports
C. on both imports and exports
D. on imports exports and nontraded goods
If the world price of steel is $500 a ton a specific tariff $50 is equivalent to an ad valorem tariff of______________?
A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent
According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?
A. scientific tariff argument
B. infant industry argument
C. beggar they neighbor argument
D. foreign dumping argument
The national security argument for protection is more likely to be valid when ?
A. The purpose is to maintain protection for an indefinite time period
B. The industry is characterized by increasing returns to scale
C. The economy operates during a recession
D. The protected industry provides invaluable goods during periods of war
A tax of 15 percent per imported item would be an example of a (an) ?
A. Ad valorem tariff
B. Specific tariff
C. Effective tariff
D. Compound tariff
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