Homework Answers
1.A tariff on an imported good lowers the price in the domestic market and raises the price the domestic producer receives - False
2.Quotas unlike tariffs do not make imported goods more expensive - True
3.Welfare economics is the study of how the allocation of resources affects economic well being - True
4.A consumer's wilingness to pay for a good is derived by the slope of the supply curve - False
5.Equality is the distribution of economic prosperity to only the richest members of society - False
Solution
1. A tariff on an imported good increases the price in the domestic market and raises the price the domestic producer receives
2. Quotas are related to constraints in quantity and hence do not affect price
3. Welfare economics is indded the study of raising economic well being by allocaiton of resources.
4, A consumer's wilingness to pay for a good is derived by the slope of the demand curve
5. Equality is the distribution of economic prosperity to all membes of society
Kindly upvote if answer was helful!
Add Answer to:
A tariff on an imported good lowers the price in the domestic market and raises the...
If a small country imposes a tariff on an imported good, domestic sellers will gain producer...
If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus. e a. True b. False
Which of the following is not a reason why imposing a tariff on imported goods may...
Which of the following is not a reason why imposing a tariff on imported goods may reduce a country's overall economic well-being? A. It encourages domestic consumers to substitute away from the now-more expensive good to a second-best good. B. By discouraging low-cost foreign goods in favor of high-cost domestic goods, it raises prices to consumers. C. Tariffs encourage producers to remain in protected industries where they don't have a comparative advantage. D. By limiting the number of goods allowed...
In the figure to the right, the importing country imposes a tariff that raises the domestic...
In the figure to the right, the importing country imposes a tariff that raises the domestic price from S4 to $6 but lowers Price, P the foreign export price from $4 to $2 As a resuit of this tariff, consumers in the importing country O A. experience a welfare loss valued at S6. O B. experience a welfare loss valued at S15. C. experience a welfare loss valued at $17 D. experience a welfare loss, but a monetary value is...
1. An export subsidy lowers the price of the exported good in the exporting country. Optional...
1. An export subsidy lowers the price of the exported good in the exporting country. Optional Answers: 1. true 2. false 2. A quota of 100,000 units imposed by a country that currently imports 10,000 units clearly affects the price of the imported good. Optional Answers: 1. true 2. false 3. Local content requirement is a good policy to boost the sales of final products. Optional Answers: 1. true 2. false
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. A...
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. As a result, consumer surplus falls by (a + b+ c+ ). Producer surplus rises by area a, and government revenue increases by the area c. Therefore, the net loss in welfare, the deadweight loss to Home, is (b + a), which is measured...
Price So 1 Po PwT Pw 4 5 9 10 6 7 11 12 13 14 Do Qi 2 0 04 Qs Qantity The graph above depicts the domestic market for good X. Domestic demand and supply are represented by DD and So respectively....
Price So 1 Po PwT Pw 4 5 9 10 6 7 11 12 13 14 Do Qi 2 0 04 Qs Qantity The graph above depicts the domestic market for good X. Domestic demand and supply are represented by DD and So respectively. The domestic price is Po and the world price is Pw. The price Pw-T, represents the world price plus a tariff. If the domestic country's government wanted to maximize total surplus then O the government should...
The following graph shows the domestic market for oil in the United States, where Sp is...
The following graph shows the domestic market for oil in the United States, where Sp is the domestic supply curve, and Dp is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of oil. Under free trade, the United States faced a total supply schedule of SD+w, which shows the quantity of oil that both domestic and foreign producers...
1) If the United States imposes a tariff on Honduran blueberries to retaliate against the quotas...
1) If the United States imposes a tariff on Honduran blueberries
to retaliate against the quotas Honduras previously placed on US
goods, then the United States will experience:
a. an additional increase in total surplus
b. a additional decrease in total surplus
c. both an increase in total surplus is possible and a decrease
in total surplus is possible
d. no additional change in total surplus
2) Tariffs on imported goods are politically useful because:
a. they generate revenue that...
I'm not sure about my answer please check and let me know ASAP 13) 4 important...
I'm not sure about my answer please check and let me
know ASAP
13) 4 important difference between tarifls and quotas is that tariffs 1A) raise the price of the good B) generate tax revenue for the government C) help domestic producers D) stimulate international trade E) None of the above. 14) The main redistribution effect of a tariff is the transfer of income from 14) A) domestic buyers to domestic producers. B) domestic producers to domestic government. C) domestic...
1) Specific tariffs are a) import taxes stated in specific legal statutes b) import taxes calculated...
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) import taxes calculated based on the origin country 2) Ad valorem tariffs are a) import taxes stated in advertisements in industry publications b) import taxes calculated as a fixed charge for each unit of imported goods c) import taxes...
If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus. e a. True b. False
In the figure to the right, the importing country imposes a tariff that raises the domestic price from S4 to $6 but lowers Price, P the foreign export price from $4 to $2 As a resuit of this tariff, consumers in the importing country O A. experience a welfare loss valued at S6. O B. experience a welfare loss valued at S15. C. experience a welfare loss valued at $17 D. experience a welfare loss, but a monetary value is...
1. An export subsidy lowers the price of the exported good in the exporting country. Optional Answers: 1. true 2. false 2. A quota of 100,000 units imposed by a country that currently imports 10,000 units clearly affects the price of the imported good. Optional Answers: 1. true 2. false 3. Local content requirement is a good policy to boost the sales of final products. Optional Answers: 1. true 2. false
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. As a result, consumer surplus falls by (a + b+ c+ ). Producer surplus rises by area a, and government revenue increases by the area c. Therefore, the net loss in welfare, the deadweight loss to Home, is (b + a), which is measured...
Price So 1 Po PwT Pw 4 5 9 10 6 7 11 12 13 14 Do Qi 2 0 04 Qs Qantity The graph above depicts the domestic market for good X. Domestic demand and supply are represented by DD and So respectively. The domestic price is Po and the world price is Pw. The price Pw-T, represents the world price plus a tariff. If the domestic country's government wanted to maximize total surplus then O the government should...
The following graph shows the domestic market for oil in the United States, where Sp is the domestic supply curve, and Dp is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of oil. Under free trade, the United States faced a total supply schedule of SD+w, which shows the quantity of oil that both domestic and foreign producers...
1) If the United States imposes a tariff on Honduran blueberries
to retaliate against the quotas Honduras previously placed on US
goods, then the United States will experience:
a. an additional increase in total surplus
b. a additional decrease in total surplus
c. both an increase in total surplus is possible and a decrease
in total surplus is possible
d. no additional change in total surplus
2) Tariffs on imported goods are politically useful because:
a. they generate revenue that...
I'm not sure about my answer please check and let me
know ASAP
13) 4 important difference between tarifls and quotas is that tariffs 1A) raise the price of the good B) generate tax revenue for the government C) help domestic producers D) stimulate international trade E) None of the above. 14) The main redistribution effect of a tariff is the transfer of income from 14) A) domestic buyers to domestic producers. B) domestic producers to domestic government. C) domestic...
Most questions answered within 3 hours.
-
Assume that in a hydrogen atom, the electron circles the nucleus
in a circle of radius...
asked 43 seconds from now -
Describe two obstacles that makes fixing atmospheric nitrogen
difficult.
asked 4 minutes ago -
T
F 53) Most differences
between human groups are the result of biology rather than
culture....
asked 8 minutes ago -
A 5.20 mW helium neon laser emits a visible laser beam with a
wavelength of 633...
asked 11 minutes ago -
Assignment:
Your
organization has made a strategic decision
to
outsourcework
currently performed in house. You have...
asked 10 minutes ago -
A hospital performs 100 surgeries per week. The probability that
complications after surgery occur is 10%....
asked 11 minutes ago -
In preparing its cash flow statement for the year ended December
31, 2018, Green Co. gathered...
asked 12 minutes ago -
Donna is 18 years old and full time accounting student.She is
saving for an overseas holiday...
asked 13 minutes ago -
Service-oriented architectures (SOA) provide
object-oriented architectures for web platforms that represent a
collection of services. SOA...
asked 13 minutes ago -
Le Terroir Winery is considering an expansion project to produce
fine wines. The trial expansion will...
asked 22 minutes ago -
The Bahraini public budget experiences deficit in the last
seven years, what are procedures are taken...
asked 29 minutes ago -
You invested $30,000 in a mutual fund at the beginning of the
year when the NAV...
asked 33 minutes ago