Question

3. The optimal tariff argument in favor of protectionism cannot hold in country X unless (a) country X imposes a very high tariff (b) the other countries also introduce their own tariffs in response (e) country X's demand and supply affect world prices (d) the government in country X spends its revenues on public goods that benefit the median voter (e) none of the above

Answer 1

3. The answer is a. i.e) Country X imposes a very high tariff

By and large, all types of import tariffs are charged to the bringing in nation and archived at government traditions. Import tariffs raise the cost of imports for a nation.

4. The answer is A. i.e) Internal Economies of Scale.

To be a wellspring of government income once the infant industry arrives at development. To draw in outside venture. To make work and build up the domestic market.

a) No, because voters have an incentive to vote for their true preferences.

b) The suggestions for open help for globalization are clear. In a district wide general supposition overview of Latin America, respondents who were increasingly happy with their lives were, overall, bound to support the market and to be happy with majority rules system. The studies in Russia yielded comparable discoveries. In both Russia and Peru, the disappointed achievers were less happy with their occupations and increasingly basic about their financial circumstance versus others in their nation. These disappointments, which may impact future financial and political conduct in the developing economies, must be tended to.

1. The answer is A. i.e) the consumers must suffer a loss.

Producers and the recipients of the quota rents gain, while consumers lose.

2. The answer is D. i.e) always reduce national welfare in small countries but may raise national welfare in large countries if the terms of trade effect is large enough.