tariff MCQ

Specific Tariff

• a fixed charge for each unit of goods imported

• a fraction of the value of the imported goods

For a ___________ a tariff on imports lowers national well being.

• small countries

• large countries

what is the loser from tariffs

• The consumers in importing countries

• The producers in importing countries

• The government in importing countries

• the consumers in Foreign countries

what is the gainer from tariffs

• The government in importing countries

• The producers in foreign countries

• The consumers in importing countries

consumer surplus area is

• above the price and under demand curve

• under the price and above the supply curve

• above the price and above the demand curve

• under the price and under the supply curve

producer surplus area is

• above the price and under demand curve

• under the price and above the supply curve

• above the price and above the demand curve

• under the price and under the supply curve

A tax of 20 cents per unit of imported cheese would be an example of a (an):

• Compound tariff

• Effective tariff

• Ad valorem tariff

• Specific tariff

A tax of 15 percent per imported item would be an example of a (an):

• Compound tariff

• Effective tariff

• Ad valorem tariff

• Specific tariff

What is the effect of a tariff on Consumer Surplus?

• Increase

• Decrease

• unchanged

What is the effect of a tariff on Producer Surplus?

• Increase

• Decrease

• unchanged