CHAPTER 5
TARIFFS
MULTIPLE-CHOICE QUESTIONS
1. The imposition of tariffs on imports results in deadweight welfare loss for the home economy. The
loss consist of the:
a. Protective effect plus consumption effect
b. Redistribution effect plus revenue effect
c. Revenue effect plus protective effect
d. Consumption effect plus redistribution effect
2. Suppo that the United States eliminates its tariff on steel imports, permitting foreign-produced steel to
enter the U.S. market. Steel prices to U.S. consumers would be expected to:
a. Increa, and the foreign demand for U.S. exports would increa
b. Decrea, and the foreign demand for U.S. exports would increa
c. Increa, and the foreign demand for U.S. exports would decrea
d. Decrea, and the foreign demand for U.S. exports would decrea
3. A $100 specific tariff provides home producers more protection from foreign competition when:
a. The home market buys cheaper products rather than expensive products
b. It is applied to a commodity with many grade variations
c. The home demand for a good is elastic with respect to price changes
d. It is levied on manufactured goods rather than primary products
4. A lower tariff on imported aluminum would most likely benefit:小米粥的功效
a. Foreign producers at the expen of domestic consumers
of
aluminum
manufacturers
b. Domestic
c. Domestic consumers of aluminum
d. Workers in the domestic aluminum industry
5. When a government allows raw materials and other intermediate products to enter a country duty free, its
tariff policy 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. Ri in both nominal and effective tariff rates
d. Fall in both nominal and effective tariff rates
6. Of the many arguments in favor of tariffs, the one that has enjoyed the most significant economic
justification has been the:
a. Infant industry argument
b. Cheap foreign labor argument
c. Balance of payments argument
d. Domestic living standard argument
7. The redistribution effect of an import tariff is the transfer of income from the domestic:
a. Producers to domestic buyers of the good
b. Buyers to domestic producers of the good
c. Buyers to the domestic government观书有感作文
d. Government to the domestic buyers
8. Which of the following is true concerning a specific tariff?
a. It is exclusively ud by the U.S. in its tariff schedules
b. It refers to a flat percentage duty applied to a good’s market value
c. It is plagued by problems associated with asssing import product values
d. It affords less protection to home producers during eras of rising prices
9. The principal benefit of tariff protection goes to:
a. Domestic
of the good produced
consumers
b. Domestic producers of the good produced
c. Foreign producers of the good produced
d. Foreign consumers of the good produced
10. Which of the following policies permits a specified quantity of goods to be imported at one tariff rate and
applies a higher tariff rate to imports above this quantity?
quota
a. Tariff
tariff
b. Import
c. Specific
tariff
d. Ad valorem tariff
11. Assume the United States adopts a tariff quota on steel in which the quota is t at 2 million tons, the
within-quota tariff rate equals 5 percent, and the over-quota tariff rate equals 10 percent. Suppo the U.S.
imports 1 million tons of steel. The resulting revenue effect of the tariff quota would accrue to:
a. The U.S. government only
b. U.S. importing companies only
c. Foreign exporting companies only
d. The U.S. government and either U.S. importers or foreign exporters
12. When the production of a commodity does not utilize imported inputs, the effective tariff rate on the
commodity:
a. Exceeds the nominal tariff rate on the commodity
b. Equals the nominal tariff rate on the commodity
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c. Is less than the nominal tariff rate on the commodity
d. None of the above
13. Developing nations often maintain that industrial countries permit raw materials to be imported at very low
tariff rates while maintaining high tariff rates on manufactured imports. Which of the following refers to the above statement?
effect
a. Tariff-quota
effect
tariff
b. Nominal
c. Tariff escalation effect
d. Protective tariff effect
14. Should the home country be “large” relative to the world, its imposition of a tariff on imports would lead to
an increa in domestic welfare if the terms-of-trade effect exceeds the sum of the:
a. Revenue effect plus redistribution effect
b. Protective effect plus revenue effect
c. Consumption effect plus redistribution effect
d. Protective effect plus consumption effect
15. Should Canada impo a tariff on imports, one would expect Canada’s:
a. Terms of trade to improve and volume of trade to decrea
b. Terms of trade to worn and volume of trade to decrea
c. Terms of trade to improve and volume of trade to increa
d. Terms of trade to worn and volume of trade to increa
16. A beggar-thy-neighbor policy is the imposition of:
a. Free trade to increa domestic productivity
b. Trade barriers to increa domestic demand and employment
c. Import tariffs to curb domestic inflation
d. Revenue tariffs to make products cheaper for domestic consumers
17. A problem encountered when implementing an “infant industry” tariff is that:
a. Domestic consumers will purcha the foreign good regardless of the tariff
b. Political pressure may prevent the tariff’s removal when the industry matures
c. Most industries require tariff protection when they are mature
d. Labor unions will capture the protective effect in higher wages
18. Tariffs are not defended on the ground that they:
a. Improve the terms of trade of foreign nations
b. Protect jobs and reduce unemployment
c. Promote growth and development of young industries
d. Prevent overdependence of a country on only a few industries霸王龙简笔画
19. The deadweight loss of a tariff:
a. Is a social loss since it promotes inefficient production
b. Is a social loss since it reduces the revenue for the government
c. Is not a social loss becau society as a whole doesn’t pay for the loss
d. Is not a social loss since only business firms suffer revenue loss
20. Which of the following is a fixed percentage of the value of an imported product as it enters the country?
tariff
a. Specific
b. Ad valorem tariff
tariff
c. Nominal
tariff
d. Effective
21. A tax of 20 cents per unit of imported chee would be an example of:
tariff
a. Compound
tariff
b. Effective
c. Ad valorem tariff
tariff
d. Specific
22. A tax of 15 percent per imported item would be an example of:
a. Ad valorem tariff
tariff
b. Specific
c. Effective
现在车厘子多少钱一斤tariff
tariff
d. Compound
23. Which type of tariff is not ud by the American government?
薄荷牛肉tariff
a. Import
tariff
b. Export
tariff
c. Specific
d. Ad valorem tariff
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24. Which trade policy results in the government levying a “two-tier” tariff on imported goods?
quota
a. Tariff
tariff
b. Nominal
tariff
c. Effective
tariff
d. Revenue
25. If we consider the impact on both consumers and producers, then protection of the steel industry is:
a. In the interest of the United States as a whole, but not in the interest of the state of Pennsylvania
b. In the interest of the United States as a whole and in the interest of the state of Pennsylvania
c. Not in the interest of the United States as a whole, but it might be in the interest of the state of
Pennsylvania
d. Not in the interest of the United States as a whole, nor in the interest of the state of Pennsylvania
26. If I purcha a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars. But if I
purcha a stereo produced in the United States, I obtain the stereo and the dollars remain in America. This line of reasoning is:
a. Valid for stereos, but not for most products imported by the United States
b. Valid for most products imported by the United States, but not for stereos
c. Deceptive since Koreans eventually spend the dollars on U.S. goods
d. Deceptive since the dollars spent on a stereo built in the United States eventually wind up overas
27. The most vocal political pressure for tariffs is generally made by:
a. Consumers lobbying for export tariffs
b. Consumers lobbying for import tariffs
c. Producers lobbying for export tariffs
d. Producers lobbying for import tariffs
28. If we consider the interests of both consumers and producers, then a policy of tariff reduction in the U.S.
auto industry is:
a. In the interest of the United States as a whole, but not in the interest of auto-producing states
b. In the interest of the United States as a whole, and in the interest of auto-producing states
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c. Not in the interest of the United States as a whole, nor in the interest of auto-producing states
d. Not in the interest of the United States as a whole, but is in the interest of auto-producing states
29. Free traders point out that:
a. There is usually an efficiency gain from having tariffs
b. There is usually an efficiency loss from having tariffs
c. Producers lo from tariffs at the expen of consumers
d. Producers lo from tariffs at the expen of the government
30. A decrea in the import tariff will result in:
a. An increa in imports but a decrea in domestic production
b. A decrea in imports but an increa in domestic production
c. An increa in price but a decrea in quantity purchad
d. A decrea in price and a decrea in quantity purchad
