QTTM G6

Which of the following best describes a tariff?

• A) A tax on imports or exports

• B) A subsidy provided to domestic producers

• C) A quota limiting the quantity of imports

• D) A monetary policy tool used to control inflation

Ad valorem tariffs are

• import taxes calculated solely on the origin country

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

• import taxes stated in ads in industry publications.

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

4. Which of the following is an example of a specific tariff?

• 4. A) A 10% tax on all imported electronics

• 4. A $2 tax per kilogram on imported coffee beans

• 4. A quota limiting the import of automobiles to 100,000 units per year

• 4. A subsidy provided to domestic farmers for wheat production

A tax of 3 dollars per barrel of oil is an example of a(n)

• specific tariff

• ad valorem tariff

• nominal tariff

• effective protection tariff

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

• raises the price in country H and does not affect its price in country F

• lowers the price of the good in both countries

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

The principle benefit of tariff protection goes to

• foreign producers of the good produced

• domestic producers of the good produced.

• domestic consumers of the good produced

• foreign consumers of the good produced

The change in the economic welfare of a country associated with an increase in a tariff equals

• efficiency loss - terms of trade gain

• efficiency gain - terms of trade loss

• efficiency loss + tax revenue gain

• efficiency loss - tax revenue gain

The tariff levied in a "large country" (Home), lowers the world price of the imported good. This causes

• foreign consumers to demand less of the good on which was levied a tariff.

• domestic demand for imports to increase.

• domestic demand for imports to increase.

• foreign suppliers to produce less of the good on which was levied a tariff.

What is the primary purpose of implementing tariffs?

• A) To increase international trade and cooperation

• B) To encourage domestic consumption of imported goods

• C) To protect domestic industries from foreign competition

• D) To promote free trade agreements between nations

How might a tariff impact consumers?

• A) It may lead to a decrease in the variety of available products.

• B) It generally reduces the prices of imported goods.

• C) It encourages competition, leading to lower prices overall.

• D) It can result in higher prices for both domestic and imported goods.