Question
In: Economics
Suppose that the government imposes quota of 70% of the current import amount. Do the following:...
Suppose that the government imposes quota of 70% of the current import amount. Do the following:
a. Plot a graph to show the effects of the quota.
b. Show the new areas of consumer surplus, producer surplus, and any other relevant areas.
c. Show the deadweight losses due to the quota.
d. Who wins and who loses from the quota?
Solutions
Rahul Sunny answered 6 months agoRelated Solutions
Suppose the government imposes a quota restricting the production of apples to an amount less than...
Suppose the government imposes a quota restricting the
production of apples to an amount less than the market equilibrium
quantity. Illustrate the situation on a production possibilities
curve for fig leaves (y-axis) and apples (x-axis) and explain which
condition for efficiency is violated.
Suppose the government imposes a quota restricting the production of apples to an amount less than...
Suppose the government imposes a quota restricting the
production of apples to an amount less than the market equilibrium
quantity. Illustrate the situation on a production possibilities
curve for fig leaves (y-axis) and apples (x-axis) and explain which
condition for efficiency is violated.
Suppose that the Malaysian government is considering whether to impose an import tariff or quota to...
Suppose that the Malaysian government is considering whether to
impose an import tariff or quota to protect domestic automobile
industry. As an advisor, what are your advice to the government?
Please analyse the similarities and differences between import
tariff and import quota when there is a reduction in supply for the
product. Use appropriate diagram/s to demonstrate your answers.
If the US government imposes a quota on imports of a popular doll, the price of...
If the US government imposes a quota on imports of a popular
doll, the price of the doll in the US will ________ and the
quantity of doll imports purchased in the US will ________.
Group of answer choices
A. fall; decrease
B. rise; decrease
C. rise; increase
D. fall; increase
How does an import quota differ from a tariff? Can the government ever capture the quota...
How does an import quota differ from a tariff? Can the
government ever capture the quota rent? If so, how?
According to the open-economy macro model, if the U.S. government imposes a quota on imports of...
According to the open-economy macro model, if the U.S.
government imposes a quota on imports of jet planes, then
a.
net capital outflow rises.
b.
net exports rise.
c.
the exchange rate rises.
d.
All of the above are correct.
Small country quota Suppose Canada places a quota on the import of steel, which reduces its...
Small country quota
Suppose Canada places a quota on the import of steel, which
reduces its steel imports, but does not stop them completely.
a) Draw a diagram to illustrate the change in Canada’s steel
market, moving from free trade to the quota.
b) Based on your diagram, compare Canada’s welfare if it
distributes the quota by auction with Canadian welfare if the quote
is distributed by a VER.
Small country quota Suppose Canada places a quota on the import of steel, which reduces its...
Small country quota
Suppose Canada places a quota on the import of steel, which
reduces its steel imports but does not stop them completely.
a) Draw a diagram to illustrate the change in Canada’s steel
market, moving from free trade to the quota.
b) Based on your diagram, compare Canada’s welfare if it
distributes the quota by auction with Canadian welfare if the quote
is distributed by a VER.
What do the welfare effects of an import quota differ from those of import tariff?
What do the welfare effects of an import quota differ
from those of import tariff?
“If the amount of quota imposed by a government and the resultant price change are equivalent...
“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.”
is this true or false?
I'm confused because some information say that government only
collect revenue from tariffs but not...
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