We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
3 3) A government is considering a quota and a tariff, both of which will reduce...
1. From the importing country’s point of view, a tariff is better than a quota because a. a tariff has a smaller effect on imports than does a quota.b. a tariff has a larger effect on imports than does a quota.c. the tariff generates tax revenue for the government.d. both reduce imports but only quotas increase price.
Exhibit 30-2 Reference: Ref 18-6 The government is considering imposing either a tariff that will restrict export supply according to the data in Exhibit 30-2 or a quota that limits imports to 8 units. Which of the following is true? Consumers will prefer the quota. The government will collect more revenue with the quota. Producers will prefer the quota. Imports will be higher with the quota. The equilibrium price will be lower with the quota. Quantity ofQuantity of Imports Demanded...
Which of the following statements about a tariff and a quota is true? Group of answer choices With a quota the domestic production of the good increases, but not with a tariff. With a tariff the domestic price of the good increases, but not with a quota. With a tariff the government collects revenues, but not with a quota. all of these With a quota the quantity of imports falls, but not with a tariff.
True or False: If the amount of quota imposed by a government and the resultant price change are equivalent to the amount of imports and the price change that a specific tariff would have, then the revenue the government collects from the imposition of the quota is the same as the revenue the government would collect if it imposed a specific tariff instead. Quotas are the commonly used form of trade barriers in the world.
PA P world Tariff $20 $14 P world Quota . D (Thousands) 20 25 35 40 Answer the questions below based upon the above diagram. Note that Q is measured in 1,000s. a. With free trade, what is the total value ($) of imports? b. If the government imposes a tariff, derive the change in consumer surplus and producer surplus. c. How much revenue does the government earn from the tariff? d. What is the net national cost of the...
1. 2) The deadweight loss associated with an import tariff is smaller than a quota of the same impact because ________________. a. The government receives revenue from the quota and not the tariff. b. Price increases more with a tariff. c. Quantity decreases more with a quota. d. The government receives revenue from the tariff and not the quota. e. Cannot be determined from the information 3) Will this firm shutdown? Q = 5 Price: $30 MC = $10 AVC...
Country A is a small country with respect to the world market of paper and imports paper. The government decides to impose an import quota on paper imports. a) Under what conditions would the net welfare effect of the import quota be positive? b) Suppose the government in country A is considering imposing an equivalent tariff instead of the import quota. Under what conditions would the welfare effects be exactly the same as in the case of a quota? c)...
1. The government is considering imposing an import quota on a product that is also produced domestically. Demonstrate that the quota would have different effects on domestic consumers and producers. Use one or more diagrams to illustrate your answer.
1. Assume the government imposes a quota on the importation of foreign cars, with the quota being less than the number of cars that would be bought and sold in the U.S. without the quota. (Assume the market for foreign cars is competitive.) The graph below shows an example of a quota of 10 cars would affect the supply curve S1 10 12 (a) Using the supply and demand curves for foreign cars, show graphically why the quota policy will...
Australia has only one firm that makes aircraft. Without assistance from the government, that firm has lost most of its business to imports from the United States and Europe. Which of the following policies would be most costly for the Australian nation as a whole, and which would be least costly? Explain. Policy A: Paying the lone Australian firm a production subsidy per plane, without protecting it against imports. Policy B: Imposing a tariff equal to the production subsidy in...