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Matching Quiz
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Match the terms on the left with the definition in the column on the right


Match:
1


tariff

2


specific tariff

3


ad valorem tariff

4


small-country case

5


one-dollar-one-vote welfare measure

6


large country

7


effective rate of protection

8


consumption effect

9


production effect

10


monopsony power

11


terms-of-trade effect

12


nationally optimal tariff

A)STET has a large enough share of the world market for one of its imports to be able to affect the world price unilaterally.
B)a change in the ratio of the international prices of a country's exports to the international prices of the country's imports as a result of the country being large.
C)the percentage by which the entire set of a nation's trade barriers raises the industry's value added per unit of output.
D)the situtation where the country is a competitive "price taker" in the world market for imports.
E)a tax on importing a good or service into a country which is collected as a percentage of the estimated market value of the imported good or service.
F)a tax on importing a good or service into a country.
G)can affect the world price of a good it imports, just by imposing a tariff.
H)the loss to consumers in the importing nation that corresponds to their being induced to cut their consumption as a result of the imposition of the tariff.
I)Every dollar of gain or loss is just as important as every other dollar of gain or loss, regardless of who the gainers or losers are.
J)a tax on importing a good or service into a country which is collected as a lump sum per unit of the good or service imported.
K)the tariff that creates the largest net gain for the country imposing it.
L)the extra cost of shifting to more expensive home production.







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