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PAGE 94Krugman/Obstfeld?Seventh Edition
Chapter 8The Instruments of Trade Policy PAGE 93
Chapter 8 The Instruments of Trade Policy
?Multiple Choice Questions
1. Specific tariffs are
(a) import taxes stated in specific legal statutes.
(b) import taxes calculated as a fixed charge for each unit of imported goods.
(c) import taxes calculated as a fraction of the value of the imported goods.
(d) the same as import quotas.
(e) None of the above.
Answer: B
2. Ad valorem tariffs are
(a) import taxes stated in ads in industry publications.
(b) import taxes calculated as a fixed charge for each unit
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