Question : 47) Which of the following common to both tariffs and : 1388268

47) Which of the following is common to both tariffs and quotas?

A) Tariffs and quotas are both used as a means to increase government revenue.

B) Tariffs and quotas both increase economic efficiency.

C) Tariffs and quotas are both designed to reduce foreign competition faced by domestic firms.

D) Tariffs and quotas are both examples of voluntary export restraints.

48) Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports.  Which of the following counter-arguments is made by economists who oppose trade restrictions?

A) Statistics show that trade restrictions actually do not save jobs.

B) Consumers pay a high cost for jobs saved through trade restrictions.

C) Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.

D) Trade restrictions benefit consumers in the short run but not in the long run.

49) Which of the following statements is true?

A) Economic efficiency would be increased if the United States eliminated all of its trade restrictions, but only if all other countries eliminated their trade restrictions too.

B) The U. S. economy would gain from the elimination of its tariffs but not from the elimination of its quotas.

C) Eliminating its tariffs and quotas unilaterally would not benefit the United States because this would remove the leverage it would have to persuade other countries to eliminate their trade restrictions.

D) The U.S. economy would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.

50) Governments sometimes erect barriers to trade other than tariffs and quotas. Which of the following is not an example of this type of trade barrier?

A) a requirement that the employees of domestic firms that engage in foreign trade pay income taxes

B) a requirement that imports meet health and safety requirements

C) restrictions on imports for national security reasons

D) a requirement that the U.S. government buy military uniforms only from U.S. manufacturers

51) If the U.S. government implements a tariff on Chinese tire imports all of the following would be made worse off except

A) U.S. consumers.

B) American tire retailers.

C) Chinese tire manufacturers.

D) American tire manufacturing workers.

52) If the U.S. government implements a tariff on Chinese tire imports, the price of Chinese-made tires will ________, the quantity demanded will ________, and consumer surplus will ________.

A) increase; decrease; decrease

B) increase; not change; increase

C) decrease; increase; not change

D) increase; decrease; increase

53) A quota is a numerical limit on the quantity of a good that can be imported.

54) A voluntary export restraint is an agreement negotiated between two countries that places a numerical limit on the quantity of a good that can be imported by one country from the other country.

55) The United States would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas.

56) A tariff is the same as a quota.