国经练习6

3. Suppose the United States and Japan enter into a voluntary export agreement in which Japan imposes an export quota on its automakers. The largest share of the export quota’s “revenue effect” would tend to be captured by: a. The U.S. government b. Japanese automakers c. American auto consumers d. American autoworkers
2. Which of the following refers to a market-sharing pact negotiated by trading partners to moderate the intensity of international competition? a. Orderly marketing agreement b. Local content requirements c. Import quota d. Trigger price mechanism
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Chapter 6: Nontariff Trade Barriers
12. Empirical studies show that because voluntary export quotas are typically administered by exporting countries, foreign exporters tend to: a. Raise their export prices, thus capturing much of the quota’s revenue effect b. Lower their export prices, thus losing much of the quota’s revenue effect c. Raise their export prices, thus selling more goods overseas d. Lower their export prices, thus selling fewer goods overseas
6. Suppose the government grants a subsidy to its export firms that permits them to charge lower prices on goods sold abroad. The export revenue of these firms would rise if the foreign demand is: a. Elastic in response to the price reduction b. Inelastic in response to the price reduction c. Unit elastic in response to the price reduction d. None of the above
13. Concerning the restrictive impact of an import quota, assume there occurs an increase in the domestic demand for the import product. As long as the quota falls short of what would be imported under free market conditions, the economy’s adjustment to the increase in demand would take the form of: a. A decrease in domestic production of the import good b. An increase in the amount of the good being imported c. An increase in the domestic price of the import good d. A decrease in domestic consumption of the import good
Chapter 6: Nontariff Trade Barriers
CHAPTER 6 NONTARIFF TRADE BARRIERS
MULTIPLE-CHOICE QUESTIONS
1. The imposition of a tariff on imported steel for the home country results in: a. Improving terms of trade and rising volume of trade b. Higher steel prices and falling steel consumption c. Lower profits for domestic steel companies d. Higher unemployment for domestic steel workers
10. Domestic content legislation applied to autos would tend to: a. Support wage levels of Americanrices for American autoworkers c. Encourage American automakers to locate production overseas d. Increase profits of American auto companies
15. A firm that faces problems of falling sales and excess productive capacity might resort to international dumping if it: a. Can charge higher prices in markets that are elastic to price changes b. Earns revenues on foreign sales that at least cover variable costs c. Can sell at that price where domestic and foreign demand elasticities equate d. Is able to force foreign prices below marginal production costs
8. Which trade restriction stipulates the percentage of a product’s total value that must be produced domestically in order for that product to be sold domestically? a. Import quota b. Orderly marketing agreement c. Local content requirement d. Government procurement policy
4. Suppose the government grants a subsidy to domestic producers of an import-competing good. The subsidy tends to result in deadweight losses for the domestic economy in the form of the: a. Consumption effect b. Redistribution effect c. Revenue effect d. Protective effect
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Chapter 6: Nontariff Trade Barriers
5. Tariffs and quotas on imports tend to involve larger sacrifices in national welfare than would occur under domestic subsidies. This is because, unlike domestic subsidies, import tariffs and quotas: a. Permit less efficient home production b. Distort choices for domestic consumers c. Result in higher tax rates for domestic residents d. Redistribute revenue from domestic producers to consumers
14. Assume the U.S. has a competitive advantage in producing calculators, while the rest of the world has a competitive advantage in steel. Suppose the U.S. and the rest of the world enter into an agreement to lower import quotas below existing levels on calculators and steel. Which of the following would least likely occur for the U.S.? Rising levels of: a. Consumer surplus for American buyers of steel b. Producer surplus for American steelmakers c. Production in the American calculator industry d. Producer surplus for American calculator producers