1. A tariff levied as a certain amount per unit imported is known as:
a specific tariff.
a counter tariff.
a forgone tariff.
F.A.S.
2. The Free alongside (FAS) method of valuing imports:
defines the price of the imported good as the foreign market price before it is loaded into the ship, train, or plane for shipment to the importing country.
defines the imported price as the price in the foreign market including the cost of loading it onto the ship, train, or plane for shipment to the importing country.
defines the imported price as the price including all inter-country charges up to the importing country's port of entry. none of the above
3. The difference between the price consumers are willing to pay and the price that they actually pay is known as:
producer surplus.
consumer surplus.
price discrimination.
government surplus.
5. A revenue tariff is:
a tariff on domestically produced products.
a tariff levied on a product that is produced domestically that is designed to protect domestic industries.
a tariff levied on a product that is not domestically produced.
a tariff based on the profits of international firms doing business within a country.
6. A VER is imposed by:
the domestic government.
the foreign government.
the domestic producers.
the domestic consumers.
7. Like tariffs, quotas result in:
additional government revenue.
an increase in consumer surplus.
a higher imported price.
more imports.
8. The U.S. policy that requires the government to buy from a domestic supplier unless the domestic supplier's price is more than 6% higher than the foreign price is called:
the Buy American Act of 1933.
the Discriminatory Policy Act of 1988.
the Protection of Domestic Industries Act of 1994.
the Foreign Policy Act of 2001.
9. The Buy American Act of 1933 gives American suppliers a _____ percent margin of preference over foreign suppliers and a _____ percent margin of preference for military or defense related goods.
6; 10
5; 20
6; 50
10; 20
10. Which of the following describes the use of government policy to enhance exports in specific industries?
VER
AVE
Strategic trade policy
NTB
11. Which of the following is the only country in the world with a uniform tariff?
Switzerland
Mexico
Nigeria
Chile
12. The activity of a group that seeks to gain from changes in government policy is known as:
public policy.
directly productive activities.
rentseeking.
broad focus tariff policy.
13. The now infamous legislation of 1930 that imposed a very high tariff structure on goods imported into the U.S. was the:
Reciprocal Trade Agreements Act.
Trade and Tariff Act.
Omnibus Trade and Competitiveness Act.
Smoot-Hawley Tariff.
14. The theory of public choice is based on the premise that:
politicians attempt to maximize their utility.
politicians attempt to maximize the country's utility.
politicians attempt to keep neutral on unpopular subjects.
politicians attempt to minimize their utility.
15. Which of the following is not a type of dumping?
sporadic dumping
predatory dumping
complex dumping
persistent dumping
16. Rules of origin are necessary for which of the following reasons?
To determine which company produced the product
To determine which country produced the product
To determine which country consumes the product
To determine where the profits of the firm are taxed
17. Which of the following is an exception to the most favored nation principle?
Trade in petroleum
trade with Japan
A free-trade area or a customs union
Trade in services
18. The U.K. joins the EU and imports wheat from France rather than from Canada and/or the U.S. This is an example of:
trade creation.
trade diversion.
trade modification.
trade deflection.
19. A significant feature of a customs union is:
that agricultural products are always excluded.
that corporate tax rates are always made common.
that the only WTO legal customs union is the EU.
a common external tariff.
20. Which of the following is not a characteristic of a common market?
Capital and labor can freely move within member countries.
The are no trade restrictions between member countries.
Member countries have a common external tariff.
Member countries have a common currency.