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Which of the following is NOT true of nontariff barriers to imports Some nontariff barriers create uncertainty about the conditions under which imports will be permitted

Which of the following is NOT true of nontariff barriers to imports Some nontariff barriers create uncertainty about the conditions under which imports will be permitted

Which of the following is NOT true of nontariff barriers to
imports?

•Some
nontariff barriers create uncertainty about the conditions under which imports
will be permitted.
•Unlike
tariffs, the nontariff barriers do not increase the price of the imported goods
in the domestic markets.
•Nontariff
barriers can limit imports with greater certainty than tariffs.
•Like
tariffs, nontariff barriers also result in a net welfare loss in a small
country.

1 points
QUESTION 2
Refer to Figure 9.2 in the PDF below. After the quota is
imposed by the government, the domestic producers gain $_______ million. (Denote negative answers with a
“-“).
Figure 9.2.pdf
1 points
QUESTION 3
Refer to Figure 9.2. If the government auctions the quota
licenses, it will collect $________ million in revenue. (Denote negative answers with a
“-“).

1 points
QUESTION 4
Refer to Figure 9.2. If the government auctions the quota
licenses, the net change in welfare (change in total surplus) for the importing
country will be $_______ million. (Denote negative answers with a
“-“).

1 points
QUESTION 5
Refer to Figure 9.2. Suppose that instead of an import
quota, this country successfully convinced the exporting country to impose a
voluntary export restraint of the same magnitude as the quota (0.9 million
mopeds). In this case, the net change in welfare for the importing country will
be $_______ million. (Denote negative answers with a “-“).

1 points
QUESTION 6
Governments choose to use voluntary export restraints rather
than tariffs because:
•the
increase in the price of the imported good in the domestic market is much lower
in case of VERs than tariffs.
•voluntary
export restraints do not generate any welfare loss in the importing country.

¶voluntary
export restraints have the potential to generate higher revenue.
•tariffs
more obviously violate the international rules of the WTO.

1 points
QUESTION 7
Which of the following statements reflects a situation in
which there are external benefits?

•John’s
decision to get vaccinated for smallpox reduces the chances that his neighbor
Pete will get smallpox.
•John
paints his house and cleans his paintbrushes in the stream.
•John
pays 5 percent of his income as taxes.
•John
sells his car to his neighbor Pete at half the first-hand price.
1 points
QUESTION 8
The French highly value domestic production of traditional
French cheese made by high-cost, traditional production methods. According to
the specificity rule, the most efficient policy tool to protect this
traditional industry would be:

•to
eliminate all barriers on cheese imports since no protectionist policy would be
efficient.
•to
impose an import tariff on cheeses produced in other countries.
•to
impose an import ban on cheeses produced in other countries.
•to
provide a production subsidy to the domestic firms.
1 points
QUESTION 9
Refer to Figure 10.1 in the PDF below. The overall impact of
the tariff would be $_______ million.
(Denote negative answers with a “-“).

Figure 10.1.pdf
1 points
QUESTION 10
Refer to Figure 10.1. If there is initially free trade, and
then a $50 per unit subsidy is given to the domestic producers of mopeds,
domestic production will increase by ________ million. (Denote negative answers
with a “-“).

1 points
QUESTION 11
If there is initially free trade, and then a $50 per unit
subsidy is given to the domestic producers of mopeds, the change in domestic
consumption of mopeds would be ________ million. (Denote negative answers with
a “-“).

1 points
QUESTION 12
The impact on the national well-being if, instead of
imposing a tariff of $50 per unit, the government provides a subsidy of $50 per
unit to the domestic manufacturers of mopeds would be $______ million. (Denote
negative answers with a “-“).

1 points
QUESTION 13
A small country imports T-shirts. With free trade at a world
price of $10, domestic production is 10 million T-shirts and domestic
consumption is 42 million T-shirts. The country’s government now decides to
impose a quota to limit T-shirt imports to 20 million per year. With the import
quota in place, the domestic price rises to $12 per T-shirt and domestic
production rises to 15 million T-shirts per year. The change in consumer
surplus due to the quota on T-shirts is $_______ million. (Denote negative answers
with a “-“).

1 points
QUESTION 14
A small country imports T-shirts. With free trade at a world
price of $10, domestic production is 10 million T-shirts and domestic
consumption is 42 million T-shirts. The country’s government now decides to
impose a quota to limit T-shirt imports to 20 million per year. With the import
quota in place, the domestic price rises to $12 per T-shirt and domestic
production rises to 15 million T-shirts per year. The consumption effect due to
the quota on T-shirts is $_______million. (Ignore negative sign).

1 points
QUESTION 15
A small country imports T-shirts. With free trade at a world
price of $10, domestic production is 10 million T-shirts and domestic
consumption is 42 million T-shirts. The country’s government now decides to
impose a quota to limit T-shirt imports to 20 million per year. With the import
quota in place, the domestic price rises to $12 per T-shirt and domestic
production rises to 15 million T-shirts per year. If the government auctions
the import licenses, the national well-being due to the quota on T-shirts will
be $______ million. (Denote negative answers with a “-“).

abhinav behal 17-Mar-2020

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