ECN 306 Quiz 6 And 7 Study Guide Exam
Fully Solved.
In the case of a small country, producer surplus - Answer increases the same amount with
tariffs and equivalent quotas.
In which way are tariffs different from quotas? - Answer They raise government revenue.
When free trade begins, producers in the importing nation gain while producers in the
exporting nation are worse off. - Answer False
A(n)_____ is a tax on imports that is stipulated as a money amount per unit. - Answer specific
tariff
Which of the following is true of consumer surplus? - Answer It is the difference between the
value that one places on a good and the price paid for the good.
An increase in the imports of clothing into the United States from India will benefit the _____
and hurt the _____. - Answer the U.S. consumers; the U.S. clothing producers
Which of the following refers to the extra cost of shifting to more expensive home production
following the imposition of a tariff? - Answer Production effect
Which of the following is an impact of tariffs on the country imposing them? - Answer The
domestic consumers pay a higher price for the imported products.
A tariff imposed by a small country hurts the tariff imposing country but the rest of the world
gains. - Answer False
Free trade is a zero-sum activity because a country always gains at the expense of its trading
partner. - Answer False
A tariff always lowers the well-being of each nation, including the nation imposing the tariff. -
Answer False
Consumer surplus is equal to the area - Answer under the demand curve and above the price
line.
Tariffs are highest in which sector internationally? - Answer Agriculture
Fully Solved.
In the case of a small country, producer surplus - Answer increases the same amount with
tariffs and equivalent quotas.
In which way are tariffs different from quotas? - Answer They raise government revenue.
When free trade begins, producers in the importing nation gain while producers in the
exporting nation are worse off. - Answer False
A(n)_____ is a tax on imports that is stipulated as a money amount per unit. - Answer specific
tariff
Which of the following is true of consumer surplus? - Answer It is the difference between the
value that one places on a good and the price paid for the good.
An increase in the imports of clothing into the United States from India will benefit the _____
and hurt the _____. - Answer the U.S. consumers; the U.S. clothing producers
Which of the following refers to the extra cost of shifting to more expensive home production
following the imposition of a tariff? - Answer Production effect
Which of the following is an impact of tariffs on the country imposing them? - Answer The
domestic consumers pay a higher price for the imported products.
A tariff imposed by a small country hurts the tariff imposing country but the rest of the world
gains. - Answer False
Free trade is a zero-sum activity because a country always gains at the expense of its trading
partner. - Answer False
A tariff always lowers the well-being of each nation, including the nation imposing the tariff. -
Answer False
Consumer surplus is equal to the area - Answer under the demand curve and above the price
line.
Tariffs are highest in which sector internationally? - Answer Agriculture
