The Instruments of Trade Policy

International Economics, 9e (Krugman et al.)
Chapter 9 The Instruments of Trade Policy

9.1 Basic Tariff Analysis

1) Specific tariffs are
A) import taxes stated in specific legal statutes.
B) import taxes calculated as a fixed charge for each unit of imported goods.
C) import taxes calculated as a fraction of the value of the imported goods.
D) the same as import quotas.
E) import taxes calculated based solely on the origin country.
Answer: B
Page Ref: 192-198
Difficulty: Easy
Question Status: New
AACSB Codes: Dynamics of the Global Economy

2) Ad valorem tariffs are
A) import taxes stated in ads in industry publications.
B) import taxes calculated as a fixed charge for each unit of imported goods.
C) import taxes calculated as a fraction of the value of the imported goods.
D) the same as import quotas.
E) import taxes calculated solely on the origin country.
Answer: C
Page Ref: 192
Difficulty: Easy
Question Status: New
AACSB Codes: Dynamics of the Global Economy

3) The excess supply curve of a product we (H) import from foreign countries (F) increases as
A) excess demand of country H increases.
B) excess demand of country F increases.
C) excess supply of country H increases.
D) excess supply of country F increases.
E) excess supply of country F decreases.
Answer: D
Page Ref: 192-198
Difficulty: Easy
Question Status: New
AACSB Codes: Dynamics of the Global Economy
4) Suppose the United States eliminates its tariff on ball bearings used in producing exports. Ball bearing prices in the United States would be expected to
A) increase, and the foreign demand for U.S. exports would increase.
B) decrease, and the foreign demand for U.S. exports would increase.
C) increase, and the foreign demand for U.S. exports would decrease.
D) decrease, and the foreign demand for U.S. exports would decrease.
E) decrease, and the foreign demand would be unchanged.
Answer: C
Page Ref: 192-198
Difficulty: Easy
Question