Question

(1) Suppose the country of Rotherham is targeted by Home country tariffs. Some possible consequences of these tariffs include

a.Rotherham residents make fewer visits to the Home country, so they buy fewer Home country products

b. the Rotherham government imposes tariffs on Home country products

c. Home country firms doing business in Rotherham get treated more harshly by the Rotherham government

d. both B and C

e.A and B and C

(2) There is always a loss of world Total Surplus when tariffs are imposed.

True OR False

(3) Placing a tariff on a product causes imports of the product to decrease.

True OR False

(4) Enacting a (binding) quota on a product causes domestic consumption to decrease for that product.

True OR False

(5) Enacting a (binding) quota on a product causes domestic production to decrease for that product.

True OR False

(6) Enacting a (binding) quota on a product creates a (temporary) shortage of the product, causing the price to rise.

True OR False

(7) Regarding protectionist trade policies,

a. the demand for protectionism comes mainly from national governments and the supply of protectionism comes mainly from national governments

b. the demand for protectionism comes mainly from national governments and the supply of protectionism comes mainly from losers in international trade

c. the demand for protectionism comes mainly from losers in international trade and the supply of protectionism comes mainly from national governments

d.the demand for protectionism comes mainly from losers in international trade and the supply of protectionism comes mainly from losers in international trade

(8) The pressure for protectionism may arise from,

a. owners of resources that lose from international trade

b. particular firms that lose from international trade

c. both A and B

d.neither A nor B

(9) Intraindustry trade tends to give rise to more protectionist pressure than does interindustry trade.

True OR False

(10) Owners of resources that are abundant in a country are less likely to want trade protection than are owners of resources that are scarce in the country.

True OR False

(11) Suppose there are specific factors of production that (in the short run) can't easily be transferred from an import sector of the economy to an export sector or a non-trade sector of the economy. The owners of these factors have an incentive to apply pressure to get trade protection.

True OR False

(12) As a form of trade protection, non-tariff barriers are generally considered to be not as bad as tariff barriers.

True OR False

Answer 1

1)B. the Rotherham government imposes tariffs on Home country products

Tariff is a tax which is charged by government on imports of goods and services.

2)true Beacause tariff increase the price of the good in the country from price p1 to p2 therefore tariff imposed alwys loss of world Total Surplus.

3)True because tariffs is tax charged on imported good, that mean tariff increase the price of the good and increase in price decreases demand in country

4)true, as tariff increase the price of product in home country which mean consumption is low in Country Beacause of increase price of product. Main purpose of gov to impose tariff is to Decrease consumption of imported goods

As per HomeworkLib policy 4 Question is attempted