Like tariffs, export subsidies also result in a net welfare loss in a small country.

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True

False

A customs union (unlike a free trade area) must worry about tariff evasion and thus impose rules-of-origin regulations on imported products

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True

False

Suppose an industry exhibits negative consumption externalities.Than the imposition of a import tariff in the industry will help to reduce those external costs.

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True

False

One political economy explanation for the common use of tariffs is that the benefits of the tariff are concentrated among a small number of producers while the costs are spread out among a large number of consumers.

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True

False

In a perfectly competitive market, an export subsidy imposed by a large exporting country will cause the country's international terms of trade to improve.

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True

False

Once countries have negotiated to set binding tariffs, the GATT/WTO agreement does not allow them to raise tariffs above those binding levels under any circumstances.

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True

False