Economics MCQs

Page No. 355

Domestic producers gain ________ because on the tariff?


a $50,000

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b $75,000

✓


c$120,000

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d$150,000

✖


View Answer $75,000

With the tariff the government collects?


a $75,000

✖


b$100,000

✓


c$125,000

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d$150,000

✖


View Answer $100,000

Suppose there is no tariff on imported inputs and the ratio of the value of imported inputs the value of the final product is 0.5 If the nominal tariff rate on the final product is 10 percent, the effective tariff rate equals ?


a5 percent

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b10 percent

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c15 percent

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d20 percent

✓


View Answer 20 percent

A tariff can _______ raise a country’s welfare?


anever

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bsometimes

✓


calways

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dNone of these

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View Answer sometimes

If a nation fitting the criteria for the large nation model imposes an import tariff ?


athe domestic price of the product will increase by more than the tariff itself

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bThe domestic price of the product will increase by the same amount as the tariff

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cThe domestic price of the product will increase by less than the tariff

✓


d None of the above

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According to the _____ argument for protection, tariffs can shield new industries from import competition until they have grown strong and efficient enough to withstand the competition by foreign producers ?


a scientific tariff argument

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binfant industry argument

✓


c beggar they neighbor argument

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dforeign dumping argument

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A tariff that prohibits imports has only ?


aa revenue effect and redistribution effec

✖


brevenue effect and protection effect

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cconsumption effect and protection effect

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dredistribution effect and consumption effect

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The effective rate of protection ?


a distinguishes between tariffs that are effective and those that are ineffective

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b is the minimum level at Which a tariff becomes effective in limiting imports

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cshows how effective a tariff is in raising revenue for the government

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dshows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

✓



Specific tariffs are collected as ?


a fixed amount of money per unit traded

✓


ba percentage of money per unit traded

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ca percentage of the quantity of imports

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dAll of the above

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If I purchase a stereo from South Korea, I obtain the stereo and South Korea obtains the dollars But if I purchase a stereo produced in the Pakistan I obtain the stereo and the rupees remain in Pakistan, This line of reasoning is ?


avalid for stereos, but nor for most products imported by Pakistan

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bvalid for most products imported by Pakistan but not for stereos

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cdeceiving since Koreans eventually spend the dollars on Pakistani goods

✓


d deceiving since the dollars spent on a stereo built in the Pakistan eventually wind up overseas

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