Chapter 9
raises the price of the good in H and lowers it in F.
If a good is imported into (large) country H from country F, then the imposition of a tariff in country H ______
lowers the price of the good in H and raises it in F.
If a good is imported into country H from country F, and if country F begins an export subsidy, it _____
the protection given by the tariff to domestic value added.
The effective rate of protection measures ______
increase decrease have no effect on decrease
A voluntary export restraint will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.
import taxes calculated as a fraction of the value of the imported goods.
Ad valorem tariffs are ____
a payment to a firm or individual that ships a good abroad.
An export subsidy is _____
increase decrease decrease decrease
An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.
tariff; does not generate revenue
An import quota is similar to a ________ in its effect on imports, EXCEPT that an import quota ________.
increase decrease have no effect on have an ambiguous effect on
An import quota will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall domestic national welfare.
generate tax revenue for the government.
An important difference between tariffs and quotas is that tariffs ____
decrease consumer surplus and increase producer surplus.
In the country levying the tariff, the tariff will _____
hurt consumers and lower the overall economic welfare of the exporting country.
In the exporting country, an export subsidy will ____
import taxes calculated as a fixed charge for each unit of imported goods.
Specific tariffs are _____
domestic producers of the good produced.
The principle benefit of tariff protection goes to _____
improve
The terms of trade ___ for the country levying import tariff.
worsen
The terms of trade ___ for the country offering export subsidy.