39. _____ tariffs are levied as a fixed charge for each unit of a good imported.
40. _____ tariffs are levied as a proportion of the value of the imported good.
41. Tariffs cause damage to _____ as they must pay more for certain imports.
42. Which of the following groups benefits the most from the imposition of tariffs?
43. A tariff of 15-20% was levied by the government of Cadmia on the value of automobile
accessories imported from a neighboring country. This increased the price of those imported car
accessories for the consumers in Cadmia. Which of the following instruments of trade policy is
being by the government of Cadmia?
44. Which of the following is true about tariffs?
45. Which of the following is most likely to be an objective of export tariffs?
46. Which of the following terms refers to a government payment to a domestic producer?
47. _____ take many forms including cash grants, low-interest loans, tax breaks, and
government equity participation in domestic firms.
48. By lowering production costs, subsidies help domestic producers in:
49. By lowering production costs, _____ help domestic producers compete against foreign
imports.
50. Which of the following industries tends to be one of the largest beneficiaries of subsidies
in most countries?
51. Which of the following statements with regard to subsidies is true?
52. Which of the following groups would benefit the most from receiving subsidies?
53. Which of the following statements is true about import quotas?
54. Under a(n) _____, a lower tariff rate is applied to imports within the quota than those over
the quota.
55. The country of Argonia imposes an ad valorem tariff of 10 percent on 1 million tons of rice
imports, after which an out-of-quota tariff of 80 percent is applied. According to this information,
which of the following trade policy instruments is being used by Argonia?
56. A(n) _____ is a quota on trade imposed by the exporting country, typically at the request
of the importing country’s government.
57. Which of the following statements is true about voluntary export restraints (VERs)?
58. The extra profit that producers make when supply is artificially limited by an import quota
is referred to as a: