FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Tariffs

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

Tariff evasion occurs when individuals or firms escape tariffs by illegal means such as smuggling imported goods into a country.

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

A tariff quota is a combination of a specific tariff and an ad valorem tariff.

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

Most countries in the world have about the same tariff levels.

A problem encountered when implementing an "infant industry" tariff is that

If Brazil levies a tariff on oil that is so high that it effectively prohibits imports of oil, the tariff has

An import tariff reduces the welfare of a "small" country by an amount equal to the redistribution effect plus the revenue effect.

The deadweight loss of a tariff is

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W. Figure 4.2. Import Tariff Levied by a "Large" Country ? -Consider Figure 4.2.Suppose the United States imposes a tariff of $100 on each ton of steel imported.With the tariff, the price of steel rises to ____ and imports fall to ____ .

A compound tariff permits a specified amount of goods to be imported at one tariff rate while any imports above this amount are subjected to a higher tariff rate.

Bonded warehouses and foreign trade zones have the effect of allowing domestic importers to prorate their input duties over time.

Assume that the United States imports laptops from South Korea at a price of $200 per unit and that these laptops are subject to an import tariff of 20 percent.Also assume that U.S.components are used in the laptops assembled by South Korea and that these components have a value of $100.Under the Offshore Assembly Provision of U.S.tariff policy, the price of an imported laptop to the U.S.consumer after the tariff has been levied is $220.

Suppose that Canada levies a tariff on imports that is a fixed percentage of the product's price.This refers to

In the absence of international trade, assume that the equilibrium price and quantity of motorcycles in Canada is $14,000 and 10 units respectively. Assuming that Canada is a small country that is unable to affect the world price of motorcycles, suppose its market is opened to international trade. As a result, the price of motorcycles falls to $12,000 and the total quantity demanded rises to 14 units; out of this total, 6 units are produced in Canada while 8 units are imported. Now assume that the Canadian government levies an import tariff of $1,000 on motorcycles. With the tariff, 8 units are produced in Canada and quantity demanded is 12 units. -Refer to Exhibit 4.2.As a result of the tariff, the price of imported motorcycles equals $13,000 and imports total 4 cycles.

Assume the United States is a large consumer of steel that is able to influence the world price. Its demand and supply schedules are respectively denoted by DU.S. and SU.S. in Figure 4.2. The overall (United States plus world) supply schedule of steel is denoted by SU.S.+W. Figure 4.2. Import Tariff Levied by a "Large" Country ? -Referring to Figure 4.2, the tariff's deadweight welfare loss to the United States totals

The United States imposes a tariff on imported stereos.This tariff would benefit

Figure 4.1 illustrates the demand and supply schedules for pocket calculators in Mexico, a "small" nation that is unable to affect the world price. Figure 4.1. Import Tariff Levied by a "Small" Country -According to Figure 4.1, the tariff results in the Mexican government collecting

Democratic candidates for federal public office in the United States have always advocated for tariffs while Republican candidates uniformly favor free trade.

An importer of computers is required to pay a duty to the government of $100 per computer regardless of the price of the computer.Which type of tariff is described in this example?

In general, tariffs tend to have

A limitation of a specific tariff is that it provides a constant level of protection for domestic commodities regardless of fluctuations in their prices over time.