In a tariff and import quota lead to equivalent increase in the domestic price of steel, then ?

Related Mcqs:

1. 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

2. 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

3. 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

4. During periods of growing domestic demand, an import quota ?

   A. is less restrictive on a country’s imports than a tariff
   B. Is more restrictive on a country’s imports than a tariff
   C. has the same restrictive effect on a country’s imports as a tariff
   D. will always generate increased tax revenue for the government

5. 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

6. In the Px = export price index, Pm = import price index, Qx = export quantity index,and Qm = import quantity index. Developing countries tend to maintain that their commodity term of trade have declined over the long run suggesting that _________ has declined?

   A. Px/Pm
   B. Pm/Px
   C. (Pm/Px)Qm
   D. (Px/Pm)Qx

7. A(n) ________ is n example of a quota where foreigners hold quota licenses ?

   A. export quota
   B. embargo
   C. auction quota
   D. tariff quota

8. A tariff-rate quota is essentially a ?

   A. two tier tariff applied to a country’s imports
   B. three-tier tariff applied to a country’s imports
   C. two tier quota applied to a county’s exports
   D. three tier quota applied to a country’s exports

9. Under a tariff- rate quota ?

   A. The within-quota tariff rate exceeds the over-quota tariff rate
   B. the over-quota tariff rate exceeds the with-quota tariff rate
   C. The within-quota tariff rate equals the over-quota tariff rate
   D. The within-quota tariff rate plus over-quota tariff rate equal 100 percent

10. A tariff-rate quota ?

    A. is a limit on the number of tariffs that a country can place on imports?
    B. uses a single tariff along with import quotas to restrict import
    C. is designed to avoid the the price increases caused by simple tariffs
    D. is a two-tier tariff system intended to restrict imports?