Tariffs are not defended on the ground that they:
A. Improve the terms of trade of foreign nations
B. Protect jobs and reduce unemployment
C. Promote growth and development of young industries
D. Prevent over-dependence of a country on only a few industries
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The deadweight loss of a tariff:
A. Is a social loss since it promotes inefficient production
B. Is a social loss since it reduces the revenue for the government
C. Is not a social loss because society as a whole doesn't pay for the loss
D. Is not a social loss since only business firms suffer revenue losses
Which of the following is a fixed percentage of the value of an imported product as it enters the country?
A. Specific tariff
B. Ad valorem tariff
C. Nominal tariff
D. Effective tariff
A tax of 20 cents per unit of imported cheese would be an example of:
A. Compound tariff
B. Effective tariff
C. Ad valorem tariff
D. Specific tariff
A tax of 15 percent per imported item would be an example of:
Ad valorem tariff
B. Specific tariff
C. Effective tariff
D. Compound tariff
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