Chapter 6, Problem 3SQ

In what way are tariff revenues and quota rents similar?

If Argentina has an absolute advantage in the production of wheat and Chile has an absolute advantage in the production of copper, then        A) neither country has anything to gain from specialisation and trade. B) it is reasonable to expect that specialisation and trade will benefit both countries. C) it is reasonable to expect that trade will benefit both countries, but specialisation will not. D) it is reasonable to expect that specialisation will benefit both countries, but trade will not

Are there any differences between a specific tariff and a quota as a policy instrument on a national economy in terms of affecting mechanisms and welfare effects? Please explain.

Argue the case for and against the imposition of a general tariff on all imports.

TRUE OR FALSE? EXPLAIN. To protect an industry, it is best when the Effective Rate of Protection is higher than the Normal Rate of Protection. For a Tariff-Rate Quota, the government imposes an import tariff and an import quota. The formation of Free Trade Areas and Custom Unions leads to free trade between all countries. Immiserizing growth takes place when there is an increase in growth and trade of a country. In the U.S, countervailing duties are levied on imported goods if they receive an export subsidy from the foreign government.

All of the following are examples of protectionism except     most favored nation treatment       voluntary export restraints       tariffs       dumping

Explain how tariffs can serve as a barrier to trade and identify at least two benefits of reducing barriers to international trade.

Which Americans benefit from the tariff? Why?    Describe why the imposition of a tariff creates a deadweight loss.