Question

QUESTION 1

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

QUESTION 2

1. There is always a loss of world Total Surplus when tariffs are imposed.

True

False

QUESTION 3

1. Placing a tariff on a product causes imports of the product to decrease.

True

False

QUESTION 4

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

True

False

QUESTION 5

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

True

False

QUESTION 6

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

True

False

QUESTION 7

1. 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

QUESTION 8

1. 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

QUESTION 9

1. Intraindustry trade tends to give rise to more protectionist pressure than does interindustry trade.

True

False

QUESTION 10

1. 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

False

QUESTION 11

1. 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

False

QUESTION 12

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

True

False

Answer 1

Q1. Both B and C

Both B and C are possible consequences of application of tariff by home country

Q2. True.

Tariff are usually harmful for supplying country and consumers.

Q3. True

Tariff are to limit imports.

Q4. True.

Quota is one of the barriers to trade and causes lesser imports.