Question

- A tariff is

A) a tax imposed by a government on goods imported into a country.

B) a subsidy granted to importers of a vital input.

C) a limit placed on the quantity of goods that can be imported into a country.

D) a health and safety restriction imposed on an imported product.

- Absolute advantage is

a) the ability to produce more of a good or service than competitors that have fewer resources.

b) the ability to produce more of a good or service than competitors when using the same amount of resources.

c) the ability to produce higher quality goods compared to one's competitors.

d) the ability to produce a good or service at a higher opportunity cost than one's competitors.

- Economists studying the effect of the China shock on the U.S. economy point out that the firms most hurt by Chinese imports have been:

a) concentrated in certain states, particularly in the Midwest and Southeast.

b) almost exclusively located in the Northeast.

c) located primarily along the Pacific coast.

d) evenly distributed across the United States.

- Which of the following statements is true?

a) Most of the leading exporting countries are large, high-income countries.

b) Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs.

c) All sectors of the U.S. economy are affected equally by international trade.

d) Each year China exports about 50 percent of its wheat crop and 40 percent of its rice crop.

Answer 1

- A tarif is a kind of tax placed by the government. Let's consider all options -

A) Traifd is a tax placed by the government on goods imported into a country. So tariff is also known as Import tariff. - Correct option.

B) A subsidy granted to importers of vital input is called import subsidy. Tariff is a tax not subsidy. Incorrect option.

C) a limit placed on quantity of goods that can be imported into a country is called a import quota and not a tariff.

D) a health and safety restriction is also not a tariff. This is a voluntary restriction and not a tax value like tariff. Incorrect option.

So option A is correct