Import-competing goods during periods of changing prices

Question

1. The principal benefit of tariff protection goes to:

• Foreign consumers of the good produced
• Domestic producers of the good produced
• Domestic consumers of the good produced
• foreign producers of the good produced

2. If we consider the interests of both consumers and producers, then a policy of tariff reduction in the U.S. auto industry is:

• In the interest of the United States as a whole, and in the interest of auto-producing states
• Not in the interest of the United States as a whole, nor in the interest of auto-producing states
• In the interest of the United States as a whole, but not in the interest of auto-producing states
• Not in the interest of the United States as a whole, but is in the interest of auto-producing states

3. A ad valorem tariff provides domestic producers a declining degree of protection against import-competing goods during periods of changing prices.

• True
• False

4. When the production of a commodity does not utilize imported inputs, the effective tariff rate on the commodity:

• Equals the nominal tariff rate on the commodity
• Exceeds the nominal tariff rate on the commodity
• Is less than the nominal tariff rate on the commodity
• None of the above

5. A beggar-thy-neighbor policy is the imposition of:

• Import tariffs to curb domestic inflation
• Revenue tariffs to make products cheaper for domestic consumers
• Free trade to increase domestic productivity
• Trade barriers to increase domestic demand and employment