Q. A tax of 20 cents per unit of imported cheese would be an example of a (an):
✅ Correct Answer: (D)
Specific tariff
International Economics MCQs and Notes
Q. A tariff-rate quota is essentially a
✅ Correct Answer: (A)
Two-tier tariff applied to a country's imports
Q. A production subsidy that is granted to a producer of an import-competing good
✅ Correct Answer: (D)
Has only a protective effect deadweight loss
Q. Nontariff trade barriers could include all of the following except
✅ Correct Answer: (D)
Antidumping/countervailing duties applied to imports
Q. International dumping may involve
✅ Correct Answer: (D)
all of the above
Q. A(n) __________ is an example of a quota where foreigners hold quota licenses.
✅ Correct Answer: (D)
Tariff quota
Q. Governments around the world tend to auction quota licenses
✅ Correct Answer: (B)
Seldom
Q. The home-country government can confiscate the revenue effect of an import quota if
✅ Correct Answer: (B)
Quota licenses are auctioned to the highest-bidding importing company
Q. __________ are profits that accrue to whomever has the right to import the good that is restricted by the quota.
✅ Correct Answer: (B)
Quota rents
Q. The welfare effects of a quota depend to a considerable extent upon
✅ Correct Answer: (D)
All of the above