Assignment:
1) Japanese tariffs and quotas reduce national welfare the most in
A) agriculture.
B) machinery.
C) textiles.
D) clothing.
E) chemical products
2) U.S. tariffs and quotas reduce national welfare the most in
A) agriculture.
B) machinery.
C) textiles.
D) clothing.
E) chemical products.
3) In the United States, the average cost to consumers for each job saved with protection is
A) approximately $12,000.
B) approximately $55,000.
C) approximately $69,000.
D) well over $100,000.
4) Two sectors of economic activity that were not part of the General Agreement on Tariffs and Trade until the Uruguay Round made them part of the WTO are
A) steel and cars.
B) textiles and agriculture.
C) agriculture and computers.
D) aircraft and cars.
E) textiles and cars.
5) 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.
E) None of the above.
6) High-income industrial nations such as the United States and Japan tend to have their highest tariffs in
A) newer, high-technology manufacturing industries.
B) capital-intensive, diversified manufacturing.
C) agriculture, clothing, and textiles
D) Both A and B.
E) None of the above.
7) 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.
E) the gains of producers are larger.
8) 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.
E) it is a cheap way to keep their employees happy.
9) A major difficulty with the infant industry argument for protection is that
A) government revenue will fall with a tariff.
B) it requires the nation to fall into the large country case for tariff protection.
C) effective rates of protection are usually greater than nominal rates.
D) Whether the industry will succeed in the long run is hard to predict and uncertain.
E) the productivity of infant industries is usually declining.
10) The optimal way for a nation to protect its access to a strategic mineral is with
A) an infant industry tariff.
B) a high rate of effective protection to keep local mines in business.
C) a quota on imports of the mineral.
D) a low nominal rate of protection.
E) a stockpile building
11) Which of the following products has the highest cost per job saved from protection in the European Union?
A) Agriculture
B) Clothing
C) Textiles
D) Television programming
E) steel
12) Economic sanctions
A) usually work to create policy change in the targeted country.
B) are more likely to work if the international community supports them.
C) are more likely to work if military force is not used.
D) never work to create policy change in the targeted country.
E) Both A and B.
13) 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.
E) low prices for imported goods that are made in countries with low wages.
14) 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.
E) charges more than a fair price.
15) If a country makes it onto the United States' Super 301 list, 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.
E) been charged by the WTO with violating its trade obligations.