Question

Select the correct anser

Everyone in a nation gains from exports. True/False

If the United States imposes a tariff, the price paid by U.S. consumers does not change. True/False

If a country imposes a tariff on rice imports, domestic production of rice will increase and domestic consumption of rice will decrease. True/False

A tariff increases the gains from trade for the exporting country. True/False

An import quota specifies the minimum quantity of the good that can be imported in a given period. True/False

Dumping by a foreign producer is easy to detect. True/False

Protection saves U.S. jobs at no cost. True/False

Answer 1

Everyone in a nation does not gain from exports because only few sectors are able to experience a rise in their income from exports and other sectors (such as those who are not specific to the production of exported good) would experience a fall in their income. False

If the United States imposes a tariff, the price paid by U.S. consumers undergoes an unfavourable change where the price is increased and variety is reduced. False

If a country imposes a tariff on rice imports, domestic production of rice will increase because now the price is higher so domestic quantity supplied is increased and that of domestic quantity demanded falls so that the consumption of rice will decrease. True

A tariff decreases the gains from trade for the exporting country before exports are reduced and so is the revenue received by the exporters. False

An import quota specifies the minimum quantity of the good that can be imported in a given period. True

Dumping by a foreign producer is easy to detect. False

Protection saves U.S. jobs at no cost. False