CHAPTER_4_TARIFFS

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1、1. Theimpositionoftariffsonimportsresultsindeadweightwelfarelossesforthehomeeconomy.Theselossesconsistofthe: a. Protectiveeffectplusconsumptioneffect b. Redistributioneffectplusrevenueeffect c. Revenueeffectplusprotectiveeffect d. Consumptioneffectplusredistri

2、butioneffectANSWER:  aPOINTS:  1DIFFICULTY:  ModerateNATIONAL STANDARDS:  UnitedStates-BPROG:ReflectiveThinking-BPROG:AnalysisSTATE STANDARDS:  UnitedStates-PA-DESC:Gainsfromtrade,speciali-DESC:Gainsfromtrade,specializationandtradeTOPICS:  TariffWelfareEffects

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: 

5、 UnitedStates-BPROG:ReflectiveThinking-BPROG:AnalysisSTATE STANDARDS:  UnitedStates-PA-DESC:Gainsfromtrade,speciali-DESC:Gainsfromtrade,specializationandtradeTOPICS:  TariffWelfareEffects:ConsumerSurplus&ProducerSurplusKEYWORDS:  BLOOM'S:Comprehension3. A$100s

6、pecifictariffprovideshomeproducersmoreprotectionfromforeigncompetitionwhen: a. Thehomemarketbuyscheaperproductsratherthanexpensiveproducts b. Itisappliedtoacommoditywithmanygradevariations c. Thehomedemandforagoodiselasticwithrespecttopricechanges d. Itislevie

7、donmanufacturedgoodsratherthanprimaryproductsANSWER:  aPOINTS:  1DIFFICULTY:  ChallengingNATIONAL STANDARDS:  UnitedStates-BPROG:ReflectiveThinking-BPROG:AnalysisSTATE STANDARDS:  UnitedStates-PA-DESC:Gainsfromtrade,speciali-DESC:Gainsfromtrade,specializationa

8、ndtradeTOPICS:  TariffWelfareEffects:Large-NationModelKEYWORDS:  BLOOM'S:Comprehension4. Alowertariffonimportedaluminumwouldmostlikelybenefit: a. Foreignproducersattheexpenseofdome