Reading 16: Trading with the World-LOS b习题精选 benefits, div, class, contrast, voluntary

土豆妮

Session 4: Economics: Economics for Valuation
Reading 16: Trading with the World

LOS b: Compare and contrast tariffs, nontariff barriers, quotas, and voluntary export restraints.

 

 

 

The primary benefits derived from tariffs usually accrue to:

A) domestic suppliers of goods protected by tariffs.

B) foreign producers of goods protected by tariffs.

C) domestic producers of export goods.

土豆妮

The primary benefits derived from tariffs usually accrue to:

A) domestic suppliers of goods protected by tariffs.

B) foreign producers of goods protected by tariffs.

C) domestic producers of export goods.

---

Tariffs raise domestic prices, benefiting domestic suppliers.

土豆妮

In what way does a tariff differ from a quota? A tariff is:

A) not significantly different from a quota; tariffs are imposed by world organizations, whereas quotas are imposed by individual countries.

B) a tax imposed by a foreign government, whereas a quota is a limit on the total amount of trade allowed.

C) a tax imposed on imports, whereas a quota is a limit on the number of units of a good that can be imported.

土豆妮

In what way does a tariff differ from a quota? A tariff is:

A) not significantly different from a quota; tariffs are imposed by world organizations, whereas quotas are imposed by individual countries.

B) a tax imposed by a foreign government, whereas a quota is a limit on the total amount of trade allowed.

C) a tax imposed on imports, whereas a quota is a limit on the number of units of a good that can be imported.

---

The difference between a tariff and a quota is that a tariff is a tax imposed on imported goods, while a quota is an import quantity limitation. Also, a tariff will generate tax revenue, but a quota does not.

土豆妮

What is the difference between a tariff and a quota?

A) A tariff is a tax imposed on imports whereas a quota is a target goal for exports.

B) A quota is a tax imposed on imports whereas a tariff sets a limit on the amount of imports.

C) A tariff is a tax imposed on imports whereas a quota sets a limit on the amount of imports.

土豆妮

What is the difference between a tariff and a quota?

A) A tariff is a tax imposed on imports whereas a quota is a target goal for exports.

B) A quota is a tax imposed on imports whereas a tariff sets a limit on the amount of imports.

C) A tariff is a tax imposed on imports whereas a quota sets a limit on the amount of imports.

---

Tariffs are taxes imposed on imports that benefit domestic producers because the higher import price due to the tax allows domestic producers to be more competitive in the local market. Governments also benefit because they collect the tax. Governments do not benefit from quotas because there is no tax involved just the supply of imports is reduced, which benefits domestic producers.

土豆妮

Who benefits least from tariffs?

A) Foreign consumers.

B) Domestic producers.

C) Domestic consumers.

土豆妮

Who benefits least from tariffs?

A) Foreign consumers.

B) Domestic producers.

C) Domestic consumers.

---

A tax imposed on imports is called a tariff, which benefits domestic producers and domestic governments. Domestic consumers lose through higher prices, less choice of products, and lower quality products.

土豆妮

Who benefits the most from a quota?

A) Foreign consumers.

B) Foreign producers.

C) Domestic producers.

土豆妮

Who benefits the most from a quota?

A) Foreign consumers.

B) Foreign producers.

C) Domestic producers.

---

Quotas restrict the supply of imported goods, which increases the price domestically benefiting domestic producers. Some foreign producers also benefit from the higher prices created by the quota if they receive the revenue transfer (due to higher prices received for all goods sold under the import license). However, overall the foreign producers do not sell as much of their product and have lost revenues.