Podcast
Questions and Answers
Which of the following is an example of a trade restriction?
Which of the following is an example of a trade restriction?
- Tariffs (correct)
- Foreign competition
- Comparative advantage
- Domestic employment
Which of the following is NOT a reason for imposing trade restrictions?
Which of the following is NOT a reason for imposing trade restrictions?
- Promoting domestic employment
- Encouraging comparative advantage (correct)
- Protecting established domestic industries
- Protecting new industries until they mature
Which of the following is similar to a quota but is imposed by the exporting country?
Which of the following is similar to a quota but is imposed by the exporting country?
- Tariffs
- Import quotas
- Voluntary export restraints (correct)
- Embargoes
What is the goal of an export subsidy?
What is the goal of an export subsidy?
What are domestic content provisions?
What are domestic content provisions?
What are capital restrictions?
What are capital restrictions?
Which of the following is NOT an example of a trade restriction?
Which of the following is NOT an example of a trade restriction?
What is the purpose of protecting new industries from foreign competition until they mature?
What is the purpose of protecting new industries from foreign competition until they mature?
What is the purpose of protecting strategic industries for national security reasons?
What is the purpose of protecting strategic industries for national security reasons?
What is the purpose of generating revenue from tariffs, especially for developing countries?
What is the purpose of generating revenue from tariffs, especially for developing countries?
Which of the following is true about an import quota compared to a tariff?
Which of the following is true about an import quota compared to a tariff?
What is the main difference between an import quota and a voluntary export restraint (VER)?
What is the main difference between an import quota and a voluntary export restraint (VER)?
What is the goal of an export subsidy?
What is the goal of an export subsidy?
What are countervailing duties?
What are countervailing duties?
In the case of an export subsidy, what is the effect on the domestic market price in the small country case?
In the case of an export subsidy, what is the effect on the domestic market price in the small country case?
What is the net welfare effect of an export subsidy in the large country case?
What is the net welfare effect of an export subsidy in the large country case?
What can changes in import policies potentially affect?
What can changes in import policies potentially affect?
What do agricultural subsidies in developed countries, such as the EU, often lead to in trade negotiations?
What do agricultural subsidies in developed countries, such as the EU, often lead to in trade negotiations?
What does a VER result in for the importing country?
What does a VER result in for the importing country?
How can changes in the government's trade policy potentially affect industry structure?
How can changes in the government's trade policy potentially affect industry structure?
Which of the following is the primary objective of tariffs?
Which of the following is the primary objective of tariffs?
What is the economic impact of a tariff on imports in a small country?
What is the economic impact of a tariff on imports in a small country?
In the context of tariffs, what is a small country?
In the context of tariffs, what is a small country?
What is the net welfare effect of a tariff in a large country?
What is the net welfare effect of a tariff in a large country?
What does the term 'deadweight loss' refer to in the context of tariffs?
What does the term 'deadweight loss' refer to in the context of tariffs?
What is the key difference between tariffs and quotas?
What is the key difference between tariffs and quotas?
What are quota rents?
What are quota rents?
What is the equivalent tariff that will restrict imports to a given quota?
What is the equivalent tariff that will restrict imports to a given quota?
What does the imposition of a quota result in?
What does the imposition of a quota result in?
What is the net welfare effect of a tariff in a large country?
What is the net welfare effect of a tariff in a large country?
