國際貿易

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11.

Consider a small country imposing a tariff on an import. The diagram below shows the country's supply of and demand for the good.

Question figure

If the tariff raises the domestic price of good from Pi to Pt, then

12.

Which of the following is NOT a result of the imposition of quotas on imports?

13.

The unit cost of production of garments and Discmans in Hong Kong and Japan are as follows:

GarmentsDiscmans
Hong Kong$200$2 000
Japan¥10 000¥50 000

Which of the following are true?

(1)Hong Kong has a comparative advantage in producing garments.
(2)If the terms of trade are that 1 unit of Discmans can be exchanged for 7 units of garments, then trade is mutually beneficial to both economies.
(3)If the terms of trade are that 1 unit of Discmans can be exchanged for 9 units of garments, then the gain to Japan from exporting 1 unit of Discmans is 4 units garments.
14.

The unit cost of producing cars and computers in the U.K. and Country A are given below:

CarsComputers
U.K.£280£70
Country A$450$150

Which of the following statement(s) is/are correct?

(1)Country A has a comparative advantage in producing cars.
(2)U.K. has an absolute advantage in producing both goods.
(3)U.K. has a comparative disadvantage in producing cars and an absolute advantage in producing computers.
15.

Which of the following is NOT the effect of imposing tariffs?

16.

Tariffs protect ______________.

17.

Refer to the following table which shows the costs of production of two goods in two countries:

TV SetsCars
Japan¥80¥160
USA$10$30

Which of the following are true?

(1)Japan has a comparative advantage in the production of cars.
(2)A terms of trade ratio of 1 Car = 2.5 TV sets would make the trade between the two countries mutually beneficial.
(3)U.S.A. has an absolute advantage in the production of TV sets.
18.

The major difference between a quota and a tariff on imports lies in their effects on

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