Question 1

Ad valorem tariffs are

Accepted Answer

Ad valorem tariffs are import taxes calculated as a percentage of the value of the imported goods, rather than a fixed amount per unit or based on the origin country.

Question 2

Which of the following is a fixed percentage of the value of an imported product?

Accepted Answer

Ad valorem tariffs are a fixed percentage of the value of an imported product.

Question 3

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

Accepted Answer

The excess supply curve of a product we import from foreign countries increases when the excess supply from those foreign countries increases, as it indicates more availability of the product for import.

Question 4

A tax of 20 percent per unit of imported garlic is an example of a(n)

Accepted Answer

An ad valorem tariff is a tax based on the value of the item, in this case, 20 percent of the value of imported garlic.

Question 5

The most vocal political pressure for tariffs is generally made by

Accepted Answer

Producers often lobby for import tariffs to protect their industries from foreign competition, which can make imported goods more expensive and less competitive compared to domestic products.

Question 6

Tariff rates on products imported into the U.S.

Accepted Answer

Tariff rates have generally decreased over the past 50 years due to trade agreements and globalization efforts.

Question 7

A specific tariff provides home producers more protection when

Accepted Answer

A specific tariff is a fixed fee per unit, so it provides more protection when the home market buys cheaper products, as the tariff represents a larger percentage of the product's price, making imports less competitive.

Question 8

When a government allows raw materials and other intermediate products to enter a country duty free,this generally results in a(an)

Accepted Answer

The answer of When a government allows raw materials and...

Question 9

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

Accepted Answer

The answer of If the tariff on computers is not...

Question 10

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

Accepted Answer

The answer of If the tariff on computers is not...

Question 11

What is a TRUE statement concerning the imposition in the U.S.of a tariff on cheese?

Accepted Answer

A tariff on cheese raises revenue for the government by imposing a tax on imported cheese, which importers must pay.

Question 12

Specific tariffs are

Accepted Answer

Specific tariffs are import taxes calculated as a fixed charge for each unit of imported goods, as opposed to ad valorem tariffs which are based on the value of the goods.

Question 13

A lower tariff on imported steel would most likely benefit

Accepted Answer

A lower tariff on imported steel would make steel cheaper for domestic consumers.

Question 14

In an inflationary environment,then over time

Accepted Answer

An ad valorem tariff, which is a percentage of the value of the goods, will automatically increase with inflation as the prices of goods rise, thus generating more revenue compared to a specific tariff, which is a fixed amount per unit and does not adjust with inflation.

Question 15

A tax of 20 cents per unit of imported garlic is an example of a(n)

Accepted Answer

A specific tariff is a fixed fee per unit of imported goods, such as 20 cents per unit of garlic.

Question 16

Suppose the United States eliminates its tariff on ball bearings used in producing exports.Ball bearing prices in the United States would be expected to

Accepted Answer

The answer of Suppose the United States eliminates its tariff...

Question 17

Tariffs are NOT defended on the grounds that they

Accepted Answer

Tariffs are typically not defended on the grounds that they improve the terms of trade of foreign nations. Instead, they are usually justified as measures to protect domestic industries, promote growth, protect jobs, and prevent over-dependence on a few industries.

Question 18

The effective rate of protection measures

Accepted Answer

The effective rate of protection measures the protection given by the tariff to domestic value added, considering both the tariffs on final goods and the tariffs on inputs used in production.

Question 19

As globalization tends to increase the proportion of imported inputs relative to domestically supplied components

Accepted Answer

The answer of As globalization tends to increase the proportion...

Question 20

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

Accepted Answer

A tariff in a large country reduces the world price of the imported good, leading foreign suppliers to produce less due to decreased profitability.

Quiz 9: The Instruments of Trade Policy