What is Tariff ?

Related Mcqs:

1. 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 ?

   A. 5 percent
   B. 10 percent
   C. 15 percent
   D. 20 percent

2. Tariff levels in advanced countries tend to be __________ tariff levels in developing countries?

   A. higher than
   B. equal to
   C. lower than
   D. there is no general pattern

3. If the world price of steel is $500 a ton a specific tariff $50 is equivalent to an ad valorem tariff of______________?

   A. 5 percent
   B. 10 percent
   C. 15 percent
   D. 20 percent

4. Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus, the effective rate of protection for the computer industry must ?

   A. be less than 12 percent and can be negative
   B. be less than 12 percent but must be greater than zero
   C. equal 6 percent
   D. exceed 30 percent

5. Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?

   A. free-trade area
   B. customs union
   C. common market
   D. monetary union

6. If a nation fitting the criteria for the small nation model imposes a 10 percent tariff on imports of autos ?

   A. The price of autos within the nation will rise by 10 percent
   B. The price of autos within the nation will rise by less than 10 percent
   C. The price of autos within the nation will rise by more than 10 percent
   D. The price of autos will not rise because of internal competition

7. The deadweight cost of the tariff equals ?

   A. $10,000
   B. $25,000
   C. $50,000
   D. $75,000

8. A tariff of ________ would be prohibitive causing imports to fall to zero?

   A. $10
   B. $15
   C. $20
   D. $25

9. A tariff that prohibits imports has only ?

   A. a revenue effect and redistribution effect
   B. revenue effect and protection effect
   C. consumption effect and protection effect
   D. redistribution effect and consumption effect

10. Domestic producers gain ________ because on the tariff?

    A. $50,000
    B. $75,000
    C. $120,000
    D. $150,000