A tariff is usually considered to be better than a quota because quotas hurt domestic producers; tariffs hurt foreign producers. tariffs produce tax revenue. tariffs help domestic producers more than quotas. quotas are inflexible. it does not distort trade as much.

The aim of a tariff is to: (a) maximise total surplus. (b) protect domestic consumers. (c) protect domestic producers. (d) create deadweight loss.

If a country's domestic price of lumber is below the world price of lumber, the country will likely: import lumber. export lumber. have an absolute advantage in lumber production. have a surplus of lumber.

In South Korea's state-led industrialization, export subsidies allowed South Korean products (from Samsung, Hyundai) to be sold all over the world. Compare and contrast export subsidies to import tariffs. Which factor might lead a country to decide on one or the other?

If Indonesia (which is a small country) imposes an import tariff on textile imports, we can conclude that:(a) The world price of textile rises, and Indonesia imports less.(b) The world price of textile stays constant, and Indonesia imports less.(c) The world price of textile falls, and Indonesia imports less.(d) The world price of textile stays constant, and Indonesia imports the same as before.  Explain why.

What are the benefits and costs of import tariffs?

The imposition of a tariff on foreign goods is more likely to decrease producer surplus of the domestic firms competing with those foreign firms on whom the tariff is imposed. True or False

Summarize the arguments in support of restricting imports.

When a country opens its markets to international trade, if the world price is ________(lower/higher) than the domestic equilibrium price, quantity supplied from foreign producers will rise.

Argue the case for and against the imposition of a general tariff on all imports.