A. rise, rise
B. fall, rise
C. fall, fall
D. rise, fall
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 - 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 - Economists suggest that an optimum tariff would be one which reduce imports to a point where___________?
A. Comparative advantage is achieved
B. Price elasticity of imports is unity and tariff revenue is maximized
C. import prices are the same as export prices
D. marginal social cost equals marginal social benefit - An optimal tariff is one which reduces imports to the level at which ____ equals ____?
A. imports, exports
B. the balance of trade, zero
C. The demand for currency the supply of currency
D. social marginal cost, social marginal benefit - The U.S has granted China permanent most favored nation treatment (normal trade relations) This means that the tariff schedules which apply to U.S imports from china ?
A. have tariff rates equal to zero suggesting a free trade policy for the United States
B. have lower tariff rates than the rates that apply to any other country sending goods to the United States
C. have tariff rates that are identical to the rates that apply to other countries to which the U.S grants most-favored nation treatment
D. have lower tariff rates than the rates that apply to other countries to which the U.S grants most favored nation treatment - With the tariff, the quantity of imports falls to ?
A. 12,000 units
B. 20,000 units
C. 30,000 units
D. 42,000 units - If A imposes a per unit tariff of $10 on imports from both B and C A will import ?
A. 400 units from B
B. 200 units from C
C. 200 units from each
D. 400 units from B and 200 units from C
