econ 461 test 1

Econ 461
International Trade
Spring Quarter
Prof. Giorgio Canarella

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Answer the question(s) below based upon the following diagram.

1)

Refer to the figure above. With free trade, the total quantity of imports would equal

1)

__d____
A)

30,000 units.

B)

10,000 units.

C)

22,000 units.

D)

20,000 units. 2)

Refer to the figure above. With free trade, the total value of imports would equal

2)

__b_____
A)

$300,000.

B)

$200,000

C)

$10.

D)

$100,000. 3)

Refer to the figure above. With the tariff, the quantity of imports falls to

3)

____a___
A)

10,000 units.

B)

22,000 units.

C)

12,000 units.

D)

14,000 units. 4)

Refer to the figure above. With the tariff, the government collects

4)

__c_____
A)

$100,000.

B)

$60,000.

C)

$50,000.

D)

$220,000. 5)

Refer to the figure above. The deadweight cost of the tariff equals

5)

__b_____
A)

$25,000.
B)

$50,000.
C)

$10,000.
D)

cannot be calculated without further information. 6)

Refer to the figure above. Domestic producers gain ________ because of the tariff.

6)

____a___
A)

$55,000

B)

$150,000

C)

$15

D)

$120,000 7)

Refer to the figure above. A tariff of ________ would be prohibitive.

7)

____b___
A)

$0

B)

$10

C)

$5

D)

$8 8)

The United States charges

8)

_d______
A)

the same tariff rates on goods from all countries.
B)

lower tariff rates on goods from countries with most favored nation status.
C)

low or zero tariffs on goods from certain developing countries.
D)

Both B and C. 9)

Tariff levels in developing countries tend to be