Based on Figure 6.1, how much revenue will the government raise from a 0.25 per bushel tariff on soybean imports?
A) The government will raise 2.5 million.
B) The government will raise 5 million.
C) The government will raise 15 million.
D) The government will raise 32.5 million.
E) The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.
Question 2 - Capital and labor only very recently have been free to move across international borders.
Indicate whether the statement is true or false
Question 3 - Based on Figure 6.1, given a tariff of 0.25 per bushel on soybean imports, how much will domestic production increase?
A) Domestic firms will increase output by 10 million bushels.
B) Domestic firms will increase output by 20 million bushels.
C) Domestic firms will increase output by 70 million bushels.
D) Domestic firms' production will not be changed by the tariff.
Question 4 - While the world was fairly integrated at the turn of the last century, most trade was in agricultural and raw materials, whereas today manufactured consumer and producer goods play a much greater role in determining exports and imports.
Indicate whether the statement is true or false
Question 5 - Based on Figure 6.1, suppose the government puts a tariff of 0.25 per bushel on soybean imports. How much will the tariff reduce imports?
A) Imports will decrease by 10 million bushels.
B) Imports will decrease by 20 million bushels.
C) Imports will decrease by 60 million bushels.
D) Imports will not change after the tariff.
Question 6 - Which of the following kinds of agreements between two or more countries would be an example of a deep integration measure?
A) An agreement to reduce tariffs and quotas
B) An agreement to unify customs forms in order to speed up cross-border traffic
C) An agreement to impose the same limits on cartels and monopolies
D) An agreement to reduce exports
E) An agreement to limit imports
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