Reference no: EM131162118

1. Devices that set up multiple exchange rates between the currencies of two nations are known as

   a. tariff quotas

   b. export subsidies

   c. exchange controls

   d. variable currencies

2. As a result of a tariff, domestic consumers buy

   a. fewer units at a higher price

   b. fewer units at a lower price

   c. more units at a lower price

   d. more units at a higher price

3. The Reciprocal Trade Agreement Act of 1934

   a. increased the level of tariffs in the United States

   b. was the first in a series of retaliatory trade acts passed by Congress

   c. was the first in a series of Congressional acts reducing tariffs

   d. increased the level of tariffs in the United States AND was the first in a series of retaliatory trade acts passed by Congress

4. If a tariff is increased to a level high enough to prevent any imports from entering the country, the tariff has the same effect as

   a. an export subsidy

   b. a voluntary export restraint

   c. dumping

   d. an embargo

5. A tariff is a

   a. tax on exports

   b. penalty imposed on exporters who export a greater quantity than the quota allows

   c. penalty imposed on importers who import a greater quantity than the quota allows

   d. tax on imports