International Economics, 8e (Krugman)
Chapter 8
The Instruments of Trade Policy
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)
None of the above.
Answer:
B
Question Status:
Previous Edition
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)
None of the above.
Answer:
C
Question Status:
Previous Edition
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)
None of the above.
Answer:
D
Question Status:
Previous Edition
4)
Suppose the United States eliminates its tariff on ball bearings used in producing exports. Ball bearing prices in the United States would be
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