WorksheetsTariff and non tariff barriers
Total questions: 25
Worksheet time: 13mins
What is a Tariff?
A tax on imported and exported goods
A price marked on goods
Profit made from manufactured goods
WHY ARE TARIFFS USED?
TO PROTECT DOMESTIC JOBS AND INDUSTRIES
TO RAISE REVENUE FOR GOVERNMENT
TO PROTECT STRATEGIC INDUSTRIES
ALL OF THE ABOVE
What is the effect of a tariff on Producer Surplus?
Increases
Decreases
Unchanged
Disappears
What is the effect of a tariff on Consumer Surplus?
Increase
Decrease
None
Disappears
WHAT ARE THE NEGATIVE IMPACT OF TARIFFS
LOWER PRICES
MORE CHOICE
LACK OF DOMESTIC INNOVATION
GREATER CHOICE
A lower tariff on imported steel would most likely benefit
foreign producers at the expense of domestic consumers.
domestic manufacturers of steel
domestic consumers of steel
workers in the steel industry
None of the above
The tariff levied in a ʺlarge countryʺ (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 decrease
domestic demand for imports to increase
foreign suppliers to produce less of the good on which was levied a tariff.
None of the above
In the country levying the tariff, the tariff will
increase both consumer and producer surplus.
decrease both the consumer and producer surplus
decrease consumer surplus and increase producer surplus
increase consumer surplus and decrease producer surplus
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
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
raises the price in country H and does not 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 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
The deadweight loss of a tariff
is a social loss because it promotes inefficient use of national resources.
is a social loss because it reduces the revenue of the government
is not a social loss because it merely redistributes revenue from one sector to another
is not a social loss because it is paid for by rich corporations
None of the above
A tax of 20 percent per unit of imported garlic is an example of a(n)
specific tariff
ad valorem tariff
nominal tariff
effective protection tariff
None of the above
_______ is levied as a fraction or percentage of the value of imported goods.
Ad-valorem Tariff
Specific Tariff
Quota Tariff
Mixed Tariff
The costs of the tariff include largely the Dead Weight Loss for Society that is equal to _______.
Production Distortion
Consumption Distortion
Both Consumption Distortion and Production Distortion
Neither Consumption Distortion nor Production Distortion
All of the following are true about export subsidies EXCEPT:
It is like a negative export tax.
It reduces the price paid by foreign importers.
It is like a positive export tax.
Domestic consumers pay more than foreign consumers.
An export subsidy _____ lead/ leads to welfare loss.
may
may not
sometines
unambiguously
Import quotas increases domestic price of the good _____ a tariff that limits imports to that level.
more than
by the same amount as
less than
more/ less than
All of the following about import quotas are true EXCEPT:
Quotas interfere with domestic prices indirectly.
The government receives some revenue.
The import license holders earn rent.
The import license sell in the domestic market at a higher price.
_______ import quotas are imposed without negotiation with foreign governments.
UNILATERAL
BILATERAL
MIXING
LICENSE
_____ import quotas sets limits on the proportion of foreign-made raw materials to be imported and used in domestic production.
UNILATERAL
BILATERAL
MIXING
LICENSE
The enforcement of import quota restricts its availability in the home market and creates _______.
shortage and fall in its price
shortage and rise in its price
surplus and rise in its price
surplus and fall in its price
Voluntary Export Restraints (VER) are considered _____, such as quotas and embargoes.
non-tariff barriers
tariff barriers
tariffs
like taxes
_______ is/ are a self-imposed trade restriction on the quantity of a good that an exporting country is allowed to export to another country.
Tarrifs
Quotas
Embargo
Voluntary Export Restraints
Who among the following does not gain due to VERs?
Producer in the importing country
Labour in the importing country
Exporters in the exporting country
Government in the importing country
