A. overproduce, under consume
B. Overproduce, overconsume
C. underproduce, under consume
D. underproduce, overconsume
Related Mcqs:
- 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 - Domestic producers gain ________ because on the tariff?
A. $50,000
B. $75,000
C. $120,000
D. $150,000 - 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 - 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 - 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 - 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 - If a tariff and import quota lead to equivalent increases in the domestic price of steel, then ?
A. the quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have different impacts on how much is produced and consumed
D. They have different impacts on how income is distributed - In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?
A. The quota results in efficiency reductions but the tariff does not
B. The tariff results in efficiency reductions but the quota does not
C. They have identical impact on how much is produced and consumed
D. They have identical impact on how income is distributed - The imposition of a tariff causes consumption to _____ and imports to _________?
A. rise, rise
B. fall, rise
C. fall, fall
D. rise, fall - International trade forces domestic firms to become more competitive in terms of ?
A. The introduction of new products
B. Product design and quality
C. Product price
D. All of the above
