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s139.central.ucv.ro
Course 477

Course 477

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When a government allows raw materials and other intermediate products to enter a country duty free, its tariff policy generally results in a:

d. Fall in both nominal and effective tariff rates

a. Effective tariff rate less than the nominal tariff rate

c. Rise in both nominal and effective tariff rates

b. Nominal tariff rate less than the effective tariff rate

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When a tariff on imported inputs exceeds that on the finished good,

d. Tariff escalation occurs

c. It is impossible to determine the protective effect of a tariff

a. The nominal tariff rate on the finished product would tend to overstate its protective effect

b. The nominal tariff rate would tend to understate it's protective effect

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The redistribution effect of an import tariff is the transfer of income from the domestic:

d. Government to the domestic buyers

c. Buyers to the domestic government

a. Producers to domestic buyers of the good

b. Buyers to domestic producers of the good

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The principal benefit of tariff protection goes to:

a. Domestic consumers of the good produced

d. Foreign consumers of the good produced

b. Domestic producers of the good produced

c. Foreign producers of the good produced

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The most vocal political pressure for tariffs is generally made by:

a. Consumers lobbying for export tariffs

c. Producers lobbying for export tariffs

d. Producers lobbying for import tariffs

b. Consumers lobbying for import tariffs

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The offshore assembly provision in the U.S.

d. Hurts the U.S. consumer

a. Provides favorable treatment to U.S. trading partners

c. Provides favorable treatment to products assembled abroad from U.S. manufactured components

b. Discriminates against primary product importers

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The imposition of tariffs on imports results in deadweight welfare losses for the home economy. These losses consist of the:

b. Redistribution effect plus revenue effect

a. Protective effect plus consumption effect

d. Consumption effect plus redistribution effect

c. Revenue effect plus protective effect

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The deadweight loss of a tariff:

b. Is a social loss since it reduces the revenue for the government

d. Is not a social loss since only business firms suffer revenue losses

c. Is not a social loss because society as a whole doesn't pay for the loss

a. Is a social loss since it promotes inefficient production

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Tariffs are not defended on the ground that they:

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

a. Improve the terms of trade of foreign nations

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Suppose 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:

d. Decrease, and the foreign demand for U.S. exports would decrease

a. Increase, and the foreign demand for U.S. exports would increase

c. Increase, and the foreign demand for U.S. exports would decrease

b. Decrease, and the foreign demand for U.S. exports would increase

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