state whether the proposition is true or false and explain the logic of your answer.
Answer) The above statement is true. In terms of welfare of importing nation:
state whether the proposition is true or false and explain the logic of your answer. In...
Explain why the following statements are true or false: A: Exporting a good reduces consumer surplus therefor overall economic welfare decreases. B: Importing a good reduces producer surplus therefore overall economic welfare decreases. C: A tariff reduces imports, increases domestic production and producer surplus therefore overall economic surplus increases. D: Export subsidies increase both consumer and producer surplus thereof they improve overall net economic welfare.
Questions is based on the partial equilibrium analysis. Remember to draw relevant graphs for all questions. 3. Belgium is a small country. Suppose it consumes computer disks, some of which are produced domestically and some of which are imported from the rest of the world (ROW). It currently has a tariff on disk imports. a. Explain how the tariff affects the domestic market, including price, production, consumption and imports of disks relative to the free trade case. b. Explain how...
3) Explain why the following statements are true or false: A: Exporting a good reduces consumer surplus therefor overall economic welfare decreases. B: Importing a good reduces producer surplus therefore overall economic welfare decreases. C: A tariff reduces imports, increases domestic production and producer surplus therefore overall economic surplus increases. D: Export subsidies increase both consumer and producer surplus thereof they improve overall net economic welfare.
Explain why the following statements are true or false: A: Exporting a good reduces consumer surplus therefore overall economic welfare decreases. B: Importing a good reduces producer surplus therefore overall economic welfare decreases. C: A tariff reduces imports, increases domestic production and producer surplus therefore overall economic surplus increases. D: Export subsidies increase both consumer and producer surplus thereof they improve overall net economic welfare. 4. Explain why the following statements are either true or false: A: In a competitive...
Explain why the following statements are true or false: 3) A: Exporting a good reduces consumer surplus therefor overall economic welfare decreases. B: Importing a good reduces producer surplus therefore overall economic welfare decreases. C: A tariff reduces imports, increases domestic production and producer surplus therefore overall economic surplus increases. D: Export subsidies increase both consumer and producer surplus thereof they improve overall net economic welfare. . 4) Explain why the following statements are either true or false: A:...
True or False? Explain your answer. 1. If a Chinese business buys a Tesla car, this would be an example of foreign direct investment inflow for the US. 2. In the presence of external economies of scale, trade will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.
4. A graphical comparison of tariffs and quotas Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Alagir, the government decides to impose a tariff of $2,000 per rug; in Ertil, the government implements a quota of 20 million rugs. Assume that Alagir and Ertil...
Explain whether the following statements are TRUE or FALSE. State your stance clearly. a) A positive term spread is indicative of economic recession. (5 marks) b) By reducing the required reserve ratio, the central bank can increase the monetary base and thus the money supply.
2) Transportation costs play a major role in determining whether or not a product is tradeable. TRUE FALSE EXPLAIN: 3) Multilateral trade policy conducted by GATT and WTO has had an easier time rolling back non-tariff barriers to trade than lowering tariffs. TRUE FALSE EXPLAIN:
True or False? Explain your answer. In the presence of dynamic increasing returns, a country can be potentially better-off by closing its borders to international trade. According to Standard Trade model, imposing a tariff will always make a country better off.