A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent
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 - 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 - 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 - 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 - 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 - Ad valorem tariffs are collected as ?
A. fixed amounts of money per unit traded
B. a percentage of the price of the product
C. a percentage of the quantity of imports
D. All of the above - Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
A. purchase; decrease
B. purchase; increase
C. sell; increase
D. sell; decrease - With international trade, what would be the maximum number of DVDs that Japan would be willing to export to South Korea in exchange for each ton of steel ?
A. One DVD
B. Two DVDs
C. Three DVDs
D. Four DVDs - Price increases from 10 to 12 pence and the price elasticity of demand is -0.5 The quantity demanded was 500 units. What will it be now ?
A. 550 units
B. 500 units
C. 450 units
D. 490 units
