The most vocal political pressure for tariffs is generally made by:
A. Consumers lobbying for export tariffs
B. Consumers lobbying for import tariffs
C. Producers lobbying for export tariffs
D. Producers lobbying for import tariffs
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If we consider the interests of both consumers and producers, then a policy of tariff reduction in the U.S. auto industry is:
A. In the interest of the United States as a whole, but not in the interest of auto-producing states
B. In the interest of the United States as a whole, and in the interest of auto-producing states
C. Not in the interest of the United States as a whole, nor in the interest of auto-producing states
D. Not in the interest of the United States as a whole, but is in the interest of auto-producing states
Free traders point out that:
A. There is usually an efficiency gain from having tariffs
B. There is usually an efficiency loss from having tariffs
C. Producers lose from tariffs at the expense of consumers
D. Producers lose from tariffs at the expense of the government
A decrease in the import tariff will result in:
An increase in imports but a decrease in domestic production
B. A decrease in imports but an increase in domestic production
C. An increase in price but a decrease in quantity purchased
D. A decrease in price and a decrease in quantity purchased
Suppose that the production of $500,000 worth of steel in the United States requires $100,000 worth of iron ore. The U.S. nominal tariff rates for importing these goods are 15 percent for steel and 5 percent for iron ore. Given this information, the effective rate of protection for the U.S. steel industry is approximately:
A. 6 percent
B. 12 percent
C. 18 percent
D. 24 percent
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