Trade Problem Set 95 J-1

DIRECTIONS: As in the popular TV game show, you are given an answer to a question and you must respond with the question. For example, if the answer is, "a tax on imports", then the correct question is, "What is a tariff?"

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1. a payment made by a government to a firm for each unit of a good the firm produces.
2. a payment received by a government for each unit of a good purchased by consumers.
3. a policy that involves a government rebate to consumers of a particular good.
4. of exports or imports, the one likely to be increased as a result of a domestic production subsidy on that product.
5. of exports or imports, the one likely to be increased as a result of a domestic consumption tax on that product.
6. of exports or imports, the one likely to be reduced as a result of a domestic production tax.
7. the effect on the price consumers pay for a good when the government offers a domestic production subsidy in a freely trading economy .
8. the effect on the price consumers pay for a good when the government sets a domestic consumption tax in a freely trading economy .
9. the effect on the price consumers pay for a good when the government sets a domestic production tax in a freely trading economy .
10. the import policy equivalent to a combined domestic production subsidy and consumption tax applied on the same good at the same level .

 

International Trade Theory and Policy - Chapter 95: Last Updated on 1/06/08