With the tariff the government collects?

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. 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 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

4. 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

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. 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

7. If a country an imposes an import tariff, its welfare can improve if ?

   A. the country is a small country rather than a larger country
   B. its terms of trade improve enough
   C. The tariff enhances the welfare of its trading partners
   D. Its government’s tax revenue increases because of the tariff

8. A tariff ______ increase a country overall welfare?

   A. will always
   B. will never
   C. can sometimes
   D. None of the above

9. A tariff can _______ raise a country’s welfare?

   A. never
   B. sometimes
   C. always
   D. None of these

10. Suppose that Pakistan imposes a tariff on ballpoint pens of 25 rupees per pen plus 12 percent of the pen’s value, this is an example of a (an) ?

    A. specific tariff
    B. ad valorem tariff
    C. compound tariff
    D. effective tariff