Economics MCQs

Page No. 355

Domestic producers gain ________ because on the tariff?


a $50,000


b $75,000


c$120,000


d$150,000


View Answer $75,000

With the tariff the government collects?


a $75,000


b$100,000


c$125,000


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


b10 percent


c15 percent


d20 percent


View Answer 20 percent

A tariff can _______ raise a country’s welfare?


anever


bsometimes


calways


dNone of these


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


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


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


d None of the above



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


binfant industry argument


c beggar they neighbor argument


dforeign dumping argument



A tariff that prohibits imports has only ?


aa revenue effect and redistribution effec


brevenue effect and protection effect


cconsumption effect and protection effect


dredistribution effect and consumption effect



The effective rate of protection ?


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


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


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


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


ca percentage of the quantity of imports


dAll of the above



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


bvalid for most products imported by Pakistan but not for stereos


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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