An effective import quota is one that increases the amount of tariff revenues received.
a. True
b. False
QUESTION 2If a union is able to increase the demand for union-made goods,
a. wages will increase but employment will decrease
b. wages will increase and employment will increase
c. wages will decrease but employment will increase
d. wages will decrease and employment will decrease
e. the demand for non-union labor will increase
QUESTION 3The difference between a specific tariff and an ad valorem tariff is that a specific tariff
a. is a set amount of money per unit of a product, while an ad valorem tariff is a set percentage of product price
b. is a set percentage of product price, while an ad valorem tariff is a set amount of money per unit of a product
c. names a particular good to which the tariff applies, while an ad valorem tariff applies to large classes of products
d. applies only to imports, while an ad valorem tariff applies only to exports
e. sets a strict quota limit on the amount one individual can purchase, while an ad valorem tariff sets no such limit
QUESTION 4Featherbedding by unions is an attempt to
a. increase the demand for union labor
b. increase the demand for non-union labor
c. decrease the demand for union labor
d. increase the supply of union labor
e. increase the supply of non-union labor
QUESTION 5The world price of a good is
a. the price paid by consumers in all nations
b. the price at which it is traded internationally
c. the price paid in U.S. dollars
d. the price paid in foreign currency
e. the terms of trade for each nation
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