chapter 8 tmqt

Specific tariffs are

• import taxes stated in specific legal statutes.

• import taxes calculated as a fixed charge for each unit of imported goods.

• import taxes calculated as a fraction of the value of the imported goods

• the same as import quotas.

• None of the above.

Ad valorem tariffs are

• import taxes stated in ads in industry publications

• import taxes calculated as a fixed charge for each unit of imported goods

• import taxes calculated as a fraction of the value of the imported goods

• the same as import quotas

• None of the above.

The excess supply curve of a product we (H) import from foreign countries (F) increases as

• excess demand of country H increases.

• excess demand of country F increases.

• excess supply of country H increases

• excess supply of country F increases.

• None of the above

If a good is imported into (large) country H from country F, then the imposition of a tariff in country H

• raises the price of the good in both countries ("the "Law of One Price")

• raises the price in country H and cannot affect its price in country F.

• lowers the price of the good in both countries

• lowers the price of the good in H and could raise it in F

• raises the price of the good in H and lowers it in F.

If a good is imported into (small) country H from country F, then the imposition of a tariff In country H

• raises the price of the good in both countries ("the "Law of One Price")

• raises the price in country H and cannot affect its price in country F

• lowers the price of the good in both countries.

• lowers the price of the good in H and could raise it in F

• raises the price of the good in H and lowers it in F

If a good is imported into (large) country H from country F, then the imposition of a tariff in country H in the presence of the Metzler Paradox,

• raises the price of the good in both countries ("the "Law of One Price").

• raises the price in country H and cannot affect its price in country F.

• lowers the price of the good in both countries

• lowers the price of the good in H and could raise it in F

• raises the price of the good in H and lowers it in F

The effective rate of protection measures

• the "true" ad valorum value of a tariff.

• the quota equivalent value of a tariff

• the efficiency with which the tariff is collected at the customhouse.

• the protection given by the tariff to domestic value added.

• None of the above

If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductor to imported components, then the effective rate of protection in the computer industry will

• increase.

• decrease

• remain the same

• depend on whether computers are PCs or "Supercomputers".

• None of the above.

If the tariff on computers is not changed, but the government then adds hitherto nonexistent tariffs on imported semi-conductor components, then the effective rate of protection in the computer industry will

• increase.

• decrease

• remain the same.

• depend on whether computers are PCs or "Supercomputers".

• None of the above.

If a small country imposes a tariff, then

• the producers must suffer a loss

• the consumers must suffer a loss.

• the government revenue must suffer a loss.

• the demand curve must shift to the left.

• None of the above