20.The process by which WTO Members were required to convert non-tariff barriers into their tariff equivalent and to reduce the resulting tariff over time was referred to as:

A. The verification process

B. Tariffication

C.Tariff Harmonization

D. Tariff Binding

21.Which of the following is a feature of the Swiss Formula?

A. The Swiss Formula reduces higher tariffs by a higher percentage than lower tariffs.

B. The higher the co-efficient used in the Swiss Formula the steeper the percentage cut in the initial tariff.

C. The Swiss Formula does not seek to harmonise tariff levels.

D. The Swiss Formula leads to an average cut across all tariffs.

22. Given an initial tariff of 20% and a coefficient of 5. The resulting tariff following the application of the Swiss Formula is:

A. 8 %

B. 12.5%

C. 4%

D. 30%

23. The percentage reduction in the initial tariff in question 22 above is:

A. 8 %

B. 32 %

C. 80%

D. 10%

24. Which of the following is a TRUE statement?

A. In the determination of whether a WTO Member has a principal supplying interest or a substantial interest only trade that has taken place under MFN must be considered.

B. In the determination of whether a WTO Member has a principal supplying interest or a substantial interest only trade that has taken place under preferential arrangement must be considered.

C.In the determination of whether a WTO member has a principal supplying interest or a substantial interest both MFN and preferential trade must be considered.

D. In the determination of whether a WTO member has a principal supplying interest or a substantial interest only trade exceeding 10% of imports must be considered.

25. Which of the following is an advantage of a tariff over a quota on imports?

A. A tariff gives rise to government revenue whereas a quota gives rise to rents which accrue to the holders of the quota.

B. The imposition of a tariff will lead to a fall in consumer surplus which is accounted for in part by a rise in producer surplus while imposition of an import quota results to a fall in consumer surplus that is not accounted for by any increase in producer surplus.

C. A tariff always leads to a fall in quantity demanded while an import quota leads to a fall in quantity supplied locally.

D. None of the above.