Many people believe that tariffs a. Are pro producers. Against consumers. Reduce overall welfare. All of the above.

8. Many people believe that tariffs

               a. Are pro producers.

               b. Against consumers.

               c. Reduce overall welfare.

               d. All of the above.

9. Tariffs can lead to all of the following EXCEPT

               a. It is a good source of government revenues.

               b. Protects domestic industries.

c. Protects domestic consumers.

               c. Makes foreign goods more costly.

10. The political arguments for government intervention in trade include:

               a. Protecting consumers from dangerous products.

               b. Protecting jobs.

               c. Retaliating for unfair foreign competition.

               d. All of the above.

11. The Infant Industry Arguments means

               a. The industry is so small.

               b. The industry that is competitive should be protected.

               c. The government is like the mother who takes care of its infant.

               d. An industry should be protected until it can grow and develop to be competitive.

12. The old theory of trade (Mercantilism) proposes that

               a. One gain for a country results in a loss to another.

               b. Calls for government intervention in trade to stimulate surplus and reduce imports.

               c. A country's best interest is to keep a trade surplus.

               d. All of the above.

13. Michael Porter theory of competitiveness identified all of the following attributes to promote or impede country's competitive advantage EXCEPT

               a. Being a member in trade union.

               b. Factor endowments.

               c. Firm Strategy and rivalry.

               d. Demand condition.

14. Qualified Industrial Zones (QIZs) require producers to use

               a. Import Quotas.

               b. Local content requirements.

               c. More workers and less machines.

               d. All of the above.

15. If a country H importing huge amounts of a good from country F, then the imposition of tariff by country H will

               a. Raise the price of the good in country H and lowers in country F.

               b. Raise the price of the good in H and can not affect the price in country F.

               c. Raise the price of the good in both countries.

               d. None of the above.

16. An import quota is a government restriction that forbids buying from a specific country.

               a. True

               b. False

17. An export subsidy raises prices in the exporting country while lowering them in the importing country.

               a. True.

               b. False.

18. Voluntary Export Restraints (VER) are imposed at the request of the importer and are agreed to by the exporter.

               a. True.

               b. False.

19. Infant Industry Argument violates WTO and it is forbidden completely.

               a. True.

               b. False.

20. When a government tries to trade with another to protect human rights policies, it is likely to be very successful.

               a. True.

               b. False.

21. Specific tariffs is a tax that is imposed as a percentage of the value of the good imported.

               a. True.

               b. False.

22. Ad Valorem tariffs are levied as a proportion of the value of imported good.

               a. True.

                b. False.