FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 5: Trade Restrictions: Tariffs

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Short Answer

Review LaterAdd Note

Review Later

When a 10 percent tariff is imposed on commodity X,there is a(n)____________ in consumer surplus and a(n)_________ in producer surplus. A)decrease,increase B)increase,decrease C)decrease,decrease D)increase,increase

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

A(n) _____________ is a tariff sufficiently high to stop all international trade so that the nation returns to autarky.

A) optimum tariff
B) prohibitive tariff
C) nominal tariff
D) ad valorem

Correct Answer

verified

B

Question 3

True/False

Review LaterAdd Note

Consumer surplus is the difference between what consumers are willing to pay for a commodity and the price they actually pay for the commodity.

A tariff that is a combination of an ad valorem and a specific tariff is a(n) :

________________ refers to the real loss in a small nation's welfare due to inefficiencies in production and distortions in consumption resulting from the imposition of a tariff.

The reduction in domestic quantity demanded,and therefore reduction in consumer surplus,of a commodity resulting from the increase in its price due to a tariff is attributed to the:

A defining characteristic of a "large nation" relative to a "small nation" with respect to identifying the welfare effects of a tariff is that the:

Use Figure 1 to answer questions -In Figure 1,if the free trade price was $10 and a $5 tariff was imposed on the imports,then how much is the gain in producer surplus?

The rate of effective protection is equal to the nominal tariff imposed on the imported product only if the domestic producer utilizes imported components in the production of the good.

When a large nation imposes an import tariff,the volume of trade will ___________,and the nation's terms of trade will ____________.

"Using international trade theory,we can unambiguously state that the imposition of a tariff imposes net losses to the imposing nation." Is this statement true or false? Explain.

A small nation is not large enough to affect the world price of the commodity it is importing

A(n) ____________ is a duty levied on a commodity as it leaves a nation and is transported to another nation..

Graphically,consumer surplus is measured by the area between the supply curve and the market price.

The decline in import volumes as a result of the imposition of a tariff is attributed to the :

A(n) ______________ is a tariff calculated on the price of a final commodity.

A tariff expressed as a fixed percentage of the value of a traded commodity is a(n) :

______________ represents payment that is made above the amount required for the producers to be willing to supply a specific amount of a commodity to the market.

A tax of 5% per unit of imported wine would be an example of a(n) :

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