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.Management Sciences
Category: Tariffs
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
If a small country imposes a tariff on an imported good, its terms of trade will ?
A. improve
B. worsen
C. not change
D. any of these
Domestic producers gain ________ because on the tariff?
A. $50,000
B. $75,000
C. $120,000
D. $150,000
With the tariff, the quantity of imports falls to ?
A. 12,000 units
B. 20,000 units
C. 30,000 units
D. 42,000 units
A tariff can _______ raise a country’s welfare?
A. never
B. sometimes
C. always
D. None of these
With free trade the total value of imports would equal ?
A. $100,000 units
B. $400,000 units
C. $600,000 units
D. $800,000 units
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