1. Japanese tariffs and quotas reduce national welfare the most in: A) agricultu
ID: 1094411 • Letter: 1
Question
1. Japanese tariffs and quotas reduce national welfare the most in:
A) agriculture.
B) machinery.
C) textiles.
D) clothing.
2. U.S. tariffs and quotas reduce national welfare the most in:
A) agriculture.
B) machinery.
C) textiles.
D) clothing.
3. The pattern of protection in industrial countries is particularly harmful to the interests of
A) low-income developing countries.
B) high-income industrial countries.
C) Asian nations.
D) European nations.
4. One reason why consumers are unlikely to be too upset about tariffs is because
A) most consumers benefit from protection.
B) tariffs are an inexpensive way to create jobs.
C) consumer losses are not real losses.
D) the costs are so spread out that no one pays a big share of the total.
5. One reason why producers have an incentive to organize in favor of protection is because
A) producer gains are spread across so many firms that no one gets a large share of the benefits.B) producer gains are relatively concentrated.
C) there is no real cost to the economy.
D) producer gains outweigh consumer losses.
6. A countervailing duty is a tariff that is levied to counteract
A) the dumping of goods in the domestic market by foreign firms.
B) a sudden surge of imports which hurt a domestic industry.
C) subsidies given to foreign firms by their own governments.
D) the tariff on domestic goods that are enacted by foreign governments.
7. Dumping occurs when a firm
A) sells too much of a good in a foreign country.
B) sells in a foreign country at prices that are below fair value.
C) sells in its home market at prices that are below the average price charged by its competitors.
D) sells in a foreign market at prices that are below the prices charged by firms based in the
foreign market.
8. If a country faces action under Section 301 of the U.S. Trade Act of 1974, it means that the
country has
A) exceeded average import growth by more than 301 percent.
B) exceeded average export growth by more than 301 percent.
C) tariffs that are above 301 percent.
D) been charged by the United States with systematically engaging in unfair trade practices.
9. Which of the following is TRUE?
A) In the European Union, the largest national welfare loss from protection was in textiles.
B) In Japan, the highest costs per job saved from protection were in agriculture.
C) In the United States, the largest national welfare loss from protection was in agriculture.
D) In the European Union, the highest costs per job saved from protection were in agriculture.
10. Since the phase-in of the Uruguay Round, average tariffs have
A) stayed the same, but the disparity in individual nation
Explanation / Answer
1.C) textiles.
2.A) agriculture.
3.B) high-income industrial countries.
4.C) consumer losses are not real losses.
5.A) producer gains are spread across so many firms that no one gets a large share of the benefits.
6.D) the tariff on domestic goods that are enacted by foreign governments.
7C) sells in its home market at prices that are below the average price charged by its competitors.
8.B) exceeded average export growth by more than 301 percent.
9,A) In the European Union, the largest national welfare loss from protection was in textiles.
10.C) fallen 40 percent.
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