ICT Sharka 19

1. 1A revenue tariff is:

   1. AA tariff on domestically produced products.
   2. BA tariff levied on a product that is produced domestically that is designed to
      protect domestic industries.
   3. CA tariff levied on a product that is not domestically produced.
   4. DA tariff based on the profits of international firms doing business within a
      country.
2. 2The purpose of a protective tariff is:

   1. ATo protect domestic consumers from harmful products.
   2. BTo protect the international laws of commerce.
   3. CTo protect the foreign country from anti-trust actions.
   4. DTo protect domestic producers from foreign competition.
3. 3Specific tariffs are collected:

   1. AOnly on industrial products.
   2. BOnly on pharmaceutical products.
   3. COnly on products that arrive by train.
   4. DAs a fixed amount of money per unit traded.
4. 4A tariff of 20% on imported goods is called:

   1. AA specific tariff.
   2. BA percentage tariff.
   3. CAn ad valorem tariff.
   4. DA compound tariff.
5. 5Product “A” has an import value of $100. If a tariff of 10 percent of the product’s value plus $10 per unit were imposed on “A”, the result would be a(n) ____ of _____ .

   1. AAd valorem; $15
   2. BCombined; $15
   3. CCompound; $15
   4. DCompound; $20
6. 6The Free alongside (FAS) method of valuing imports:

   1. ADefines the price of the imported good as the foreign market price before it is loaded into the ship, train, or plane for shipment to the importing country.
   2. BDefines the imported price as the price in the foreign market including the cost of loading it onto the ship, train, or plane for shipment to the importing country.
   3. CDefines the imported price as the price including all inter-country charges up to the importing country’s port of entry.
   4. DNone of the above
7. 7CIF stands for:

   1. ACaptain in front.
   2. BCapital is free.
   3. CCost, insurance, and freight.
   4. DA form of grease payment.
8. 8The availability of alternative definitions of “price” such as FAS, CIF, and FOB creates complications regarding the administration of the _____ tariff.

   1. AAd valorem
   2. BGeneric
   3. CExport
   4. DSpecific
9. 9A reduction in the price of a commodity due to an increase in supply will:

   1. AIncrease consumer surplus.
   2. BReduce consumer surplus.
   3. CLeave consumer surplus unchanged.
   4. DCause the demand curve to shift to the right.
10. 10The consumer surplus gained by moving from autarky to free trade is represented by:

    1. Aa + b + c + d.
    2. Ba + b
    3. Ca + c
    4. Dnone of the above

11. 11The producer surplus lost by moving from autarky to free trade is represented by

    1. Aa
    2. Bb
    3. Cc
    4. Dnone of the above
12. 12According to the graph, imports:

    1. AHave caused the price to fall from P to Pw.
    2. BHave caused consumer surplus to rise.
    3. CHave caused producer surplus to fall.
    4. DAll of the above
13. 13The introduction of a tariff would raise the price from:

    1. APw to Pt.
    2. BPt to P.
    3. CPw to P.
    4. DNone of the above
14. 14Without a tariff the price of imports would be:

    1. Aa + b + c + d.
    2. Bb + d.
    3. CP
    4. DPw
15. 15When a specific tariff is placed on an item, compared to free trade consumers lose:

    1. Aa
    2. Bb
    3. Cd
    4. Da + b + c + d.
16. 16With the tariff, government revenue is:

    1. Aa
    2. Bc
    3. Cb
    4. Dd
17. 17The imposition of a tariff would yield tariff revenue of:

    1. Ab
    2. Ba
    3. Cd
    4. Dc
18. 18The increase in producer surplus attributable to the tariff is:

    1. Ab
    2. Ba
    3. Cc
    4. Dd
19. 19The gain in producer’s surplus that occurs because of the tariff is:

    1. Ab
    2. Ba
    3. Cc
    4. Dd
20. 20The losses to society because of the inefficient allocation of resources attributable to the tariff is

    1. Aa
    2. Bb
    3. Cc
    4. Db + c
21. 21The dead weight loss of the tariff is:

    1. Aa + d.
    2. Bb + d
    3. Cc + d
    4. Db + c
22. 22When a tariff is imposed on imported goods or services, the consumer surplus in the domestic market _____ and producer surplus in the domestic market _____ .

    1. ARises; falls
    2. BRises; rises
    3. CFalls; falls
    4. DFalls; rises
23. 23If a large country imposes a tariff:

    1. AThe imported product price rises by more than the tariff.
    2. BThe imported product price rises by exactly the amount of the tariff.
    3. CThe imported product price rises by less than the amount of the tariff.
    4. DThe imported product price falls by the amount of the tariff.

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Finance Quiz on ICT Sharka 19, created by Emma Kolarova on 19/03/2018.

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Emma Kolarova

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