1.One difference between the tariffs on steel imports levied in 2002 and the tariffs on Chinese tire imports levied in 2009 was that:

A) U.S. steel producers supported the steel tariff, while U.S. tire producers did not support the tire tariff.

B) U.S. tire producers supported the tire tariff, while U.S. steel producers did not support the steel tariff.

C) U.S. steel workers supported the steel tariff, while U.S. tire workers did not support the tire tariff.

D) U.S. tire workers supported the tire tariff, while U.S. steel workers producers did not support the steel tariff.

2.What is a difference between a tariff imposed by a large country and a tariff imposed by a small country?

A) A tariff imposed by a large country has no deadweight consumption and production losses.

B) A tariff imposed by a large country has a terms-of-trade effect.

C) A tariff imposed by a small country has a terms-of-trade effect.

D) A tariff imposed by a large country has no deadweight consumption loss.

3.Who bears the burden of the terms-of-trade effect when a large country imposes a tariff?

A) foreign consumers

B) foreign producers

C) domestic producers

D) domestic consumers

4.Suppose that the free-trade price of a ton of steel is 500. (Note: is the symbol for the euro, a common currency used in 19 European countries, including Finland.) Finland, a small country, imposes a 60-per-ton specific tariff on imported steel. With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel.

What will happen to the Finnish price of steel if Finnish demand for steel increases and a 300,000-ton quota remains unchanged?

A) It will not change.

B) It will increase.

C) It will decrease.

D) It will first increase, then decrease.

5.If rent-seeking occurs, then a country's welfare losses from quotas will:

A) increase.

B) decrease.

C) not change.

D) first increase, then decrease.

6.Who captured the quota rents of the 1980's U.S-Japanese voluntary export agreement for automobiles?

A) Japanese auto producers

B) U.S. consumers of Japanese automobiles

C) U.S. auto producers

D) the U.S. government