1、1. Theimpositionoftariffsonimportsresultsindeadweightwelfarelossesforthehomeeconomy.Theselossesconsistofthe: a. Protectiveeffectplusconsumptioneffect b. Redistributioneffectplusrevenueeffect c. Revenueeffectplusprotectiveeffect d. Consumptioneffectplusredistri
3、:ConsumerSurplus&ProducerSurplusKEYWORDS: BLOOM'S:Comprehension2. SupposethattheUnitedStateseliminatesitstariffonsteelimports,permittingforeign-producedsteeltoentertheU.S.market.SteelpricestoU.S.consumerswouldbeexpectedto: a. Increase,andtheforeigndemandforU.
4、S.exportswouldincrease b. Decrease,andtheforeigndemandforU.S.exportswouldincrease c. Increase,andtheforeigndemandforU.S.exportswoulddecrease d. Decrease,andtheforeigndemandforU.S.exportswoulddecreaseANSWER: bPOINTS: 1DIFFICULTY: ModerateNATIONAL STANDARDS:
6、pecifictariffprovideshomeproducersmoreprotectionfromforeigncompetitionwhen: a. Thehomemarketbuyscheaperproductsratherthanexpensiveproducts b. Itisappliedtoacommoditywithmanygradevariations c. Thehomedemandforagoodiselasticwithrespecttopricechanges d. Itislevie