1.What happens if a well-intentioned social planner decides to produce a quantity of a good that is greater than the market equilibrium level?
2.There are three identical vases available for purchase. Buyer 1 values a vase at Rs30, buyer 2 values it at Rs25, and buyer 3 values it at Rs20. If the selling price is set at Rs25, how many vases will be sold, and what will be the total consumer surplus in this market?
3.A buyer values a new Honda at Rs20,000 but manages to purchase it for Rs18,000. What is the amount of her consumer surplus?
4.Which area represents consumer surplus in a market graph?
5.Under a free trade system, what is the total worth of imports?
6.What do empirical studies generally indicate about the nature of U.S. import tariffs?
7.Which of the following statements about government trade policies is NOT typically true?
8.If the nominal tariff on finished computers is 12% and the weighted average nominal tariff on the inputs for making computers is 18%, what can be said about the effective rate of protection for the computer sector?
9.If Pakistan applies a tariff on ballpoint pens consisting of 25 rupees per pen plus 12% of the pen's price, what type of tariff is this an example of?
10.If the global market price for steel is $500 per ton, what ad valorem tariff rate corresponds to a specific tariff of $50 per ton?
11.Currently, tariffs are primarily applied by most nations to which category of goods?
12.How much benefit do domestic manufacturers receive as a result of the tariff?
13.How much revenue does the government generate from the tariff?
14.If there is no tariff on imported inputs and the value of these inputs is half the value of the final product, what is the effective tariff rate when the nominal tariff on the final product is 10%?
15.Can imposing a tariff ever enhance the welfare of a nation?
16.When a country that meets the criteria of the large nation model levies an import tariff, what happens to the domestic price of the imported good?
17.Which argument supports the use of tariffs to protect emerging industries from foreign competition until they become competitive and efficient?
18.Which effects are present when a tariff completely bans imports?
19.What does the effective rate of protection measure?
20.How are specific tariffs typically imposed?