Question 1

A) Which of the following describes a tariff?(1 point)

The U.S. bans imports and exports of machinery to and from the United Kingdom.

The U.S. bans imports and exports of machinery to and from the United Kingdom.

The U.S. limits the number of imported machinery from the United Kingdom.

The U.S. limits the number of imported machinery from the United Kingdom.

The U.S. taxes each piece of machinery imported from the United Kingdom.

The U.S. taxes each piece of machinery imported from the United Kingdom.

The U.S. pays U.S. producers for every piece of machinery exported to the United Kingdom.

The U.S. pays U.S. producers for every piece of machinery exported to the United Kingdom.

Question 2

A) A country currently imports 10 million units of a good at a price of$10 for each unit. If the government imposes an import quota of 8 million units, which of the following is likely to result?(1 point)

The quantity imported will increase, and the per-unit price will increase.

The quantity imported will increase, and the per-unit price will increase.

The quantity imported will decrease, and the per-unit price will increase.

The quantity imported will decrease, and the per-unit price will increase.

The quantity imported will increase, and the per-unit price will decrease.

The quantity imported will increase, and the per-unit price will decrease.

The quantity imported will decrease, and the per-unit price will decrease.

The quantity imported will decrease, and the per-unit price will decrease.

Question 3

A) Canada has voluntarily reduced its exports of Canadian steel to Japan. Which of the followingwould have a similar effect on the quantity imported and the price paid for Canadian steel by Japanese producers?(1 point)

Canada implements a tariff on Japanese steel.

Canada implements a tariff on Japanese steel.

Japan implements an import quota on Canadian steel.

Japan implements an import quota on Canadian steel.

Canada implements an export subsidy on Canadian steel.

Canada implements an export subsidy on Canadian steel.

Japan implements a voluntary export restraint on Japanese steel.

Japan implements a voluntary export restraint on Japanese steel.

Question 4

A) The U.S. government is considering implementing a tariff on processed vegetables imported from India. Assuming that the U.S. is an importer of processed vegetables, which of the following correctly explains the impact on the U.S. market?(1 point)

The quantity of processed vegetables demanded will rise since the tariff will lower the domestic market price below the world price.

The quantity of processed vegetables demanded will rise since the tariff will lower the domestic market price below the world price.

The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.

The quantity of processed vegetables demanded will fall since the tariff will raise the domestic market price above the world price.

The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.

The quantity of processed vegetables demanded will rise since the tariff will raise the domestic market price above the world price.

The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.

The quantity of processed vegetables demanded will fall since the tariff will lower the domestic market price below the world price.

Question 5

A) Which sentence describes the most likely effect of a U.S. tariff on imports?(1 point)

more variety and lower prices for American consumers

more variety and lower prices for American consumers

increased sales for foreign producers

increased sales for foreign producers

reduced trade barriers for foreign producers

reduced trade barriers for foreign producers

less variety and higher prices for American consumers

less variety and higher prices for American consumers