Q&A
AGEC 3300 EXAM 2 MC ACTUAL
SOLUTION!!
A specific tariff is? - Answers a fixed amount of money per physical
unit of an imported product.
If the consumption effect of a tariff were 60 units and the production effect
of a tariff were 40 units, then imports would - Answers decrease by
100
If a tariff in a small country produces a deadweight loss of $50, reduces
consumer surplus by $200, and increases producer surplus by $40, which
of the following is correct? - Answers Tariff revenues equal $110
A nation that creates a tariff high enough to preserve the domestic market
entirely for domestic producers will also benefit from significant tariff
revenue - Answers False
Compared to an import quota, an equivalent tariff may provide a less
certain amount of protection for domestic producers since - Answers
Foreign firms may absorb the tariff by offering exports at lower prices
