Tariff

Tariffs are only imposed on imported goods, not exported goods.

• True

• False

What are the benefits of tariffs?

• Higher prices for consumers

  
  

• Reduced choices and market inefficiencies

  
  

• Higher production costs

  
  

• Protecting domestic industries

  
  

Effective Rate of Protection (ERP)

• Looks at the effect of the entire structure of tariffs on both inputs and outputs

• What matters isn't really the direct protection for your output, but how much extra profit you make

  
  

• Also depends on protection of inputs

  
  

• All of the above ideas

  
  

When analyzing trade policy in practice, it is important and necessary to know how much protection trade policy actually provides

• True

• False

 This is a tax on imports that is used to increase price of foreign products and raise government revenue.

• Tariff

  
  

• Quota

  
  

• Subsidy

  
  

• Embargo

  
  

What are the problems that arise from the method of measuring the amount of protection? (can choose multiple answers)

• Tariffs will lower the price of foreign exports

  
  

• Tariffs can have different effects on different stages of production of goods

  
  

• Tariffs can have similar effects on different stages of a good's production

• Tariffs will increase the price of foreign exports

  
  

 _ is a combination of an ad valorem and specific tariff

• Anti-dumping tariff

  
  

• Specified Valorem Tariff

  
  

• EXIM Tariff

  
  

• A compound tariff

  
  

What is the effect of a tariff on Producer Surplus?

• Increase

  
  

• None

  
  

• Decrease

  
  

• Disappears

  
  

What are the negative impacts of tariffs?

• Lower prices 

  
  

• Lack of domestic innovation 

  
  

• More choice

  
  

• Great choice 

  
  

Why are tariffs used?

• To protect domestic jobs and industries 

  
  

• To Protect strategic industries

  
  

• To raise revenue for government

  
  

• All of the above