A tariff differs from a quota in that a tariff is: A. levied on imports, whereas a quota is imposed on exports. |
D |
Tariffs are taxes imposed on _________________. A. imported products |
A |
An import quota or tariff on French wine that raises the prices for wine will probably: A. hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices. |
A |
Which of the following would be expected if the tariff on foreign-produced automobiles were increased? A. The domestic price of automobiles would fall. |
B |
_____________ are numerical limitations on the quantity of products that can be imported. A. Tariffs |
B |
Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement: A. contains one error; the trade restraints do not increase the scarcity of foreign-produced goods. |
D |
Which of the following is the best example of a quota? A. a tax placed on all small cars sold in the domestic market |
B |
A new American import quota on imported steel would be likely to: A. increase the production of steel-using American firms. |
B |
The infant industry argument for protectionism suggests that an industry must be protected in the early stages of its development so that: A. firms will be protected from subsidized foreign competition. |
… |
____________ means selling goods below their cost of production. A. Protectionism |
B |
The membership of the WTO includes about __________ nations. A. 15 |
B |
An import quota does which of the following? A. decreases the price of the imported goods to consumers |
B |
Import tariffs generally ________ the output of domestic producers of the affected products and also _________ the output of domestic exporters. A. decrease; decrease |
C |
If Japan does not have a comparative advantage in producing rice, the consequences of adopting a Japanese policy reducing or eliminating imports of rice into the country would include: A. Japan will be able to consume a combination of rice and other goods beyond their domestic production possibilities curve. |
B |
__________________ are ways that a nation can draw up regulations, inspections, and paperwork to make it more costly or difficult to import products. A. Tariffs |
B |
A rule that every imported product must be opened by hand and inspected with a magnifying glass, by one of just three government inspectors available at any given time might be referred to as __________________. A. a non-tariff barrier |
A |
There are nontariff barriers in the form of _______________ regulations, in which certain textiles are made in the United States, shipped to other countries, combined in making apparel with textiles made in those other countries—and then re-exported back to the United States at a lower tariff rate. A. import quota |
C |
Despite interlocking import quotas, tariffs, and nontariff barriers, the share of apparel sold in the United States that is imported rose from about _________ in 1999 to about ________ today. A. 10%; 25% |
C |
After the USA introduces a tariff in the market for gigastraps, the price of gigastraps in the USA will: A. decrease. |
B |
A tariff differs from a quota in that a tariff is: A. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported. |
A |
Suppose the government of Taiwan subsidized its watch-making industry, enabling Taiwanese producers to undersell foreign watch producers. The law of comparative advantage indicates that watch-importing nations would best take advantage of the Taiwanese subsidization policy by: A. setting a tariff high enough to just offset the subsidy granted to the Taiwanese watch-making industry. |
D |
Tariffs result in a decrease in consumer surplus because: A. the price and the quantity consumed of the protected good increases. |
C |
Which of the following is the best example of a tariff? A. a tax placed on all small cars sold in the domestic market |
D |
Economists would say tariffs: A. protect domestic producers of exported goods. |
B |
Politicians often argue for tariff increases in order to reduce the nation’s dependence on imports. If tariffs are increased, the long-run effect is most likely to be: A. an increase in American imports, and a decrease in American exports. |
D |
Introducing a tariff on vitamin Z would: A. reduce exports of vitamin Z. |
B |
Raising an existing tariff on grapes from Argentina will: A. increase domestic production of grapes. |
C |
Which of the following is not a short-run impact of imposing quotas on the American industries they seek to protect? A. government tax revenues increase |
A |
________________________ is theoretically possible, even sensible: give an industry a short-term indirect subsidy through protection, and then reap the long-term economic benefits of having a vibrant healthy industry. A. Protectionism |
B |
Low-wage U.S. workers suffer from protectionism in all the industries that they don’t work in, because: A. protectionism provides a barrier to entry to the job markets that the low-wage earners want entry to. |
B |
The United States national minimum wage is _____________. A. $6.25/hour |
B |
Why would foreign firms export a product at less than its cost of production—which presumably means making a loss? A. Many nations participate in poor planning and as a result produce a surplus of product which they sell at a loss. |
B |
The race to the bottom scenario of global environmental degradation is explained roughly like this: A. Companies seek to reduce their costs of operations on plant and equipment design and this results in higher levels of pollution. |
C |
It is sometimes argued that nation should not depend too heavily on other countries for supplies of certain key products. This argument is commonly known as the _______________. A. National Interest Argument |
A |
The acronym GATT stands for: A. General Association for Trade and Tariffs. |
B |
International trade is fundamentally a ________________________. A. win-lose situation |
C |
During the second half of the twentieth century, trade barriers have in general: A. declined quite substantially both in the U.S. economy and in the global economy. |
A |
As international trade increases, it contributes to a shift in jobs away from industries where that economy does not have a(n) __________ advantage and toward industries where it has a(n) ___________ advantage. A. absolute; absolute |
B |
If the government legislates policies that block imports of solar panels and gives domestic manufacturers a $5 billion dollar tax subsidy, the benefits to the U.S. solar panel manufacturing and distribution industry will be very visible. The bearers of the cost of the tax subsidy: A. are easy to identify. |
D |
macro chapter 34
Share This
Unfinished tasks keep piling up?
Let us complete them for you. Quickly and professionally.
Check Price