Question :
91) Suppose the Canadian government imposes trade restrictions (tariffs or : 1384535
91) Suppose the Canadian government imposes trade restrictions (tariffs or quotas) on the import of steel. Which of the following groups are likely to be in favour of this policy?
A) Canadian automotive union
B) Canadian consumers
C) foreign steel producers
D) foreign steel consumers
E) Canadian steelworkers’ union
92) Refer to Table 34-1. If Canada has a 40% tariff in place on the import of cheddar cheese, the price per kilogram of cheese from Canada, United Kingdom and United States respectively, is
A) $10, $12.60 and $11.20.
B) $10, $9.00 and $8.00.
C) $14, $12.60 and $11.20.
D) $14, $9.00 and $8.00.
E) $10, $10 and $10.
93) Refer to Table 34-1. Assuming that a 40% tariff is in place and that Canadians buy only the lowest-priced cheddar cheese, from which country will Canada buy its cheese?
A) all from United Kingdom
B) all from the United States
C) all from Canada
D) from Canada and United States
E) from United Kingdom and United States
94) Refer to Table 34-1. Suppose Canada and the United Kingdom negotiate a free-trade agreement in cheese. But Canada has a 40% tariff on cheese imported from other countries. From which country will Canada now buy its cheese?
A) all from United Kingdom
B) all from the United States
C) all from Canada
D) from Canada and United States
E) from United Kingdom and United States
95) When a firm sells its product abroad for less than the price at which it sells it in its domestic market, it is often accused of
A) countervailing.
B) cross-subsidization.
C) dumping.
D) predatory pricing.
E) strategic selling.
96) A country that implements a voluntary export restriction (VER)
A) employs the “escape clause.”
B) sets a countervailing duty.
C) sets a maximum on the quantity of some commodity that it may import each year.
D) agrees to limit the amount of a commodity it sells to another country.
E) sets a tariff to raise the price of an imported commodity.
97) In international trade, “dumping” is defined as charging
A) a lower price in foreign markets than in the domestic market.
B) a domestic retail price above the marginal cost faced by a firm importing the product at the wholesale level.
C) export prices below average cost for a short period of time.
D) export prices below average cost for any period of time.
E) export prices below marginal cost for any period of time.
98) Suppose that a Canadian brewery sells beer in both Canadian and American markets and that all prices are in Canadian dollars. The Canadian domestic price is $17.00 per case while in the American market it sells the same case for $13.00. The average total cost of production is $11.50. This brewery could be accused of
A) bad management.
B) dumping.
C) exploiting the Canadian beer drinkers.
D) exchange-rate manipulation.
E) trying to reduce the American domestic price of beer.
99) Trade-remedy policies commonly used to achieve a “level playing field” are
A) countervailing duties.
B) export taxes.
C) quotas.
D) system-wide subsidies to domestic consumers.
E) voluntary export restraints (VER).
100) Countervailing duties are a method of trade restriction designed to offset
A) foreign tariffs.
B) dumping.
C) quotas.
D) a trading partner’s countervailing duties.
E) subsidies by foreign governments.
