國際經(jīng)濟(jì)學(xué)英文版上冊(第八版)章節(jié)練習(xí)第八章.doc

International Economics, 8e (Krugman) 6Chapter 8 The Instruments of Trade Policy 1) Specific tariffs are A) import taxes stated in specific legal statutes. B) import taxes calculated as a fixed charge for each unit of imported goods. C) import taxes calculated as a fraction of the value of the imported goods. D) the same as import quotas. E) None of the above. Answer: B 2) Ad valorem tariffs are A) import taxes stated in ads in industry publications. B) import taxes calculated as a fixed charge for each unit of imported goods. C) import taxes calculated as a fraction of the value of the imported goods. D) the same as import quotas. E) None of the above. Answer: C 3) The excess supply curve of a product we (H) import from foreign countries (F) increases as A) excess demand of country H increases. B) excess demand of country F increases. C) excess supply of country H increases. D) excess supply of country F increases. E) None of the above. Answer: D 4) Suppose the United States eliminates its tariff on ball bearings used in producing exports. Ball bearing prices in the United States would be expected to A) increase, and the foreign demand for U.S. exports would increase. B) decrease, and the foreign demand for U.S. exports would increase. C) increase, and the foreign demand for U.S. exports would decrease. D) decrease, and the foreign demand for U.S. exports would decrease. E) None of the above. Answer: C 5) A specific tariff provides home producers more protection when A) the home market buys cheaper products rather than expensive products. B) it is applied to a commodity with many grade variations. C) the home demand for a good is elastic with respect to price changes. D) it is levied on manufactured goods rather than primary products. E) None of the above. Answer: A 6) A lower tariff on imported steel would most likely benefit A) foreign producers at the expense of domestic consumers. B) domestic manufacturers of steel. C) domestic consumers of steel. D) workers in the steel industry. E) None of the above. Answer: C 7) A problem encountered when implementing an infant industry tariff is that A) domestic consumers will purchase the foreign good regardless of the tariff. B) the industry may never mature. C) most industries require tariff protection when they are mature. D) the tariff may hurt the industrys domestic sales. E) None of the above. Answer: B8) Which of the following is a fixed percentage of the value of an imported product? A) specific tariff B) ad valorem tariff C) nominal tariff D) effective protection tariff E) None of the above. Answer: B 9) A tax of 20 cents per unit of imported garlic is an example of a(n) A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) None of the above. Answer: A 10) A tax of 20 percent per unit of imported garlic is an example of a(n) A) specific tariff. B) ad valorem tariff. C) nominal tariff. D) effective protection tariff. E) None of the above. Answer: B 11) Tariffs are not defended on the ground that they A) improve the terms of trade of foreign nations. B) protect jobs and reduce unemployment. C) promote growth and development of young industries. D) prevent over-dependence of a country on only a few industries. E) None of the above. Answer: A 12) The most vocal political pressure for tariffs is generally made by A) consumers lobbying for export tariffs. B) consumers lobbying for import tariffs. C) consumers lobbying for lower import tariffs. D) producers lobbying for export tariffs. E) producers lobbying for import tariffs. Answer: E 13) What is a true statement concerning the imposition in the U.S. of a tariff on steel? A) It lowers the price of cheese domestically. B) It raises the price of cheese internationally. C) It raises revenue for the government. D) It will always result in retaliation from abroad. E) None of the above. Answer: C 14) The tariff levied in a large country (Home), lowers the world price of the imported good. This causes A) foreign consumers to demand less of the good on which was levied a tariff. B) domestic demand for imports to decrease. C) domestic demand for imports to increase. D) foreign suppliers to produce less of the good on which was levied a tariff. E) None of the above. Answer: D 15) In the country levying the tariff, the tariff will A) increase both consumer and producer surplus. B) decrease both the consumer and producer surplus. C) decrease consumer surplus and increase producer surplus. D) increase consumer surplus and decrease producer surplus. E) None of the above. Answer: C 16) Refer to above figure. In the absence of trade, how many Widgets does this country produce and consume? Answer: 60 17) Refer to above figure. In the absence of trade, what is the countrys consumer plus producer surplus? Answer: $180, $180 18) Refer to above figure. With free trade and no tariffs, what is the quantity of Widgets imported? Answer: 100 19) Refer to above figure. With a specific tariff of $3 per unit, what is the quantity of Widget imports? Answer: 80 20) Refer to above figure. The loss of Consumer Surplus due to the tariff equals _. Answer: $230 21) Refer to above figure. The lowest specific tariff which would be considered prohibitive is _. Answer: $5 22) If a good is imported into (large) country H from country F, then the imposition of a tariff in country H A) raises the price of the good in both countries (the Law of One Price). B) raises the price in country H and cannot affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F. Answer: E 23) If a good is imported into (small) country H from country F, then the imposition of a tariff In country H A) raises the price of the good in both countries (the Law of One Price). B) raises the price in country H and does not affect its price in country F. C) lowers the price of the good in both countries. D) lowers the price of the good in H and could raise it in F. E) raises the price of the good in H and lowers it in F. Answer: B 24) The effective rate of protection measures A) the true ad valorum value of a tariff. B) the quota equivalent value of a tariff. C) the efficiency with which the tariff is collected at the customhouse. D) the protection given by the tariff to domestic value added. E) None of the above. Answer: D 25) If the tariff on computers is not changed, but domestic computer producers shift from domestically produced semiconductors to imported components, then the effective rate of protection in the computer industry will A) increase. B) decrease C) remain the same. D) depend on whether computers are PCs or Supercomputers. E) None of the above. Answer: A 26) If a small country imposes a tariff, then A) the producers must suffer a loss. B) the consumers must suffer a loss. C) the government revenue must suffer a loss. D) the demand curve must shift to the left. E) None of the above. Answer: B 27) When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an) A) effective tariff rate less than the nominal tariff rate. B) nominal tariff rate less than the effective tariff rate. C) rise in both nominal and effective tariff rates. D) fall in both nominal and effective tariff rates. E) None of the above. Answer: B 28) Of the many arguments in favor of tariffs, the one that has enjoyed significant economic justification has been the A) cheap foreign labor argument. B) infant industry argument. C) even playing field argument. D) balance of payments argument E) domestic living standard argument. Answer: B 29) The principle benefit of tariff protection goes to A) domestic consumers of the good produced. B) foreign consumers of the good produced. C) domestic producers of the good produced. D) foreign producers of the good produced. E) None of the above. Answer: C 30) Should the home country be large relative to its trade partners, its imposition of a tariff on imports would lead to an increase in domestic welfare if the terms of the trade rectangle exceed the sum of the A) revenue effect plus redistribution effect. B) protective effect plus revenue effect. C) consumption effect plus redistribution effect. D) production distortion effect plus consumption distortion effect. E) None of the above. Answer: D 31) The deadweight loss of a tariff A) is a social loss because it promotes inefficient use of national resources. B) is a social loss because it reduces the revenue of the government. C) is not a social loss because it merely redistributes revenue from one sector to another. D) is not a social loss because it is paid for by rich corporations. E) None of the above. Answer: A 32) The fact that industrialized countries levy very low or no tariff on raw materials and semi processed goods A) helps developing countries export manufactured products. B) has no effect on developing country exports. C) hurts developing country efforts to export manufactured goods. D) hurts developing country efforts to export raw materials. E) None of the above. Answer: C 33) The change in the economic welfare of a country associated with an increase in a tariff equals A) efficiency loss - terms of trade gain. B) efficiency gain - terms of trade loss. C) efficiency loss + tax revenue gain. D) efficiency loss + tax revenue gain + terms of trade gain. E) None of the above. Answer: 34) The two deadweight triangles are the Consumption distortion and Production distortion losses. It is easy to understand why the Consumption distortion constitutes a loss for society. After all it raises the prices of goods to consumers, and even causes some consumers to drop out of the market altogether. It seems paradoxical that the Production distortion is considered an equivalent burden on society. After all, in this case, profits increase, and additional production (with its associated employment) comes on line. This would seem to be an offset rather than an addition to the burden or loss borne by society. Explain why the Production distortion is indeed a loss to society, and what is wrong with the logic that leads to the apparent paradox. Answer: The Production Distortion represents an inefficient shift of societys res