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1 | |
A tax applied as an amount per physical unit of an imported good is known as a(n) |
| | A) | preferential duty. |
| | B) | ad valorem tariff. |
| | C) | specific tariff. |
| | D) | weighted-average tariff. |
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2 | |
The arrangement whereby products imported from trading partners in the developing world are subject to lower tariff rates than products from other countries is known as |
| | A) | the Generalized System of Preferences. |
| | B) | most-favored nation status. |
| | C) | normal trade relations status. |
| | D) | offshore assembly provisions. |
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3 | |
Normal trade relations status |
| | A) | is sometimes called "most-favored-nation status." |
| | B) | reflects the notion of non-discrimination. |
| | C) | has been a central characteristic of GATT and the WTO. |
| | D) | is all of the above. |
| | E) | is a and b only. |
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4 | |
Use the following information to answer Questions 4 and 5.Suppose a country imports only three products. It imports $400,000 worth of good A, $600,000 worth of good B, and $200,000 worth of good C. Suppose further that the tariffs on goods A, B, and C are 25%, 10%, and 50% respectively. The unweighted-average tariff rate in this country is _________________ percent. |
| | A) | 20 |
| | B) | 28.33 |
| | C) | 40 |
| | D) | 70 |
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5 | |
The weighted-average tariff rate in this country is ____________ percent. |
| | A) | 21.67 |
| | B) | 18 |
| | C) | 40 |
| | D) | 70 |
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6 | |
Use the following information to answer Questions 6 and 7.Suppose queeks are made using two inputs: flugles and zipples. Suppose further that the free trade prices of queeks, flugles, and zipples are as follows: $25, $5, $12. There is a 15% tariff on queeks and flugles, and a 10% tariffs on zipples. What is the nominal rate of protection in the queeks industry? |
| | A) | 11.67% |
| | B) | 15% |
| | C) | 22.5% |
| | D) | 47.5% |
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7 | |
What is the effective rate of protection in the queeks industry? |
| | A) | 11.67% |
| | B) | 15% |
| | C) | 22.5% |
| | D) | 47.5% |
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8 | |
The requirement that a tariff is levied unless 62.5 percent of the value of a car originates in the NAFTA countries is an example of a |
| | A) | voluntary export restraint. |
| | B) | voluntary restraint agreement. |
| | C) | government procurement provision. |
| | D) | domestic content requirement. |
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9 | |
An arrangement in which a government levies a tax on its citizens $5 for every unit of a good that is exported is known as a(n) |
| | A) | export subsidy. |
| | B) | export tax. |
| | C) | export augmentation. |
| | D) | voluntary export restraint. |
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10 | |
Voluntary export restraints involve |
| | A) | foreign firms agreeing to limit the quantity foreign products sold in their domestic markets. |
| | B) | implicit threats of import quotas in case of noncompliance. |
| | C) | quantitative restrictions imposed by the importing country's government. |
| | D) | optional taxes on imports. |
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