Use the concept of externalities to explain why if left to private decisions, the usage of face masks to prevent the transmission of COVD-19 is likely to be inefficiently low.
In: Economics
In: Economics
what is the effect of exchange rate policy in an neo-classical model?
In: Economics
The events of 2020 and in particular the COVID-19 pandemic have created many threats and even opportunities for companies. How has the COVID-19 pandemic affected the taxi industry in Australia? What strategies would you recommend to taxi companies in the short and long term to deal with these issues?
In: Economics
In: Economics
The UK’s Customs Service has informed Dolls Us that the customs duty on Carlie will amount to 15 per cent ad valorem and that the value will be determined on the basis of the sales price on the domestic market in Richland. Dolls Us challenges both the level of the duty and the manner in which the Customs Service intends to determine the value of the dolls for customs purposes. It also disagrees with the Customs Service that the country of origin of Carlie is Richland and notNewland. Furthermore, Dolls Us considers that Carlie is not really a toy but rather a collector's item. Finally, it wonders whether, for the customs classification of Carlie, it makes a difference whether Carlie is imported as a finished product or in parts still to be assembled.
The UK Customs Service also informs Dolls Us that all imported dolls are subject to an import surcharge of £0.30 per doll as well as a special customs- handling fee of 0.2 per cent ad valorem. This fee goes to the Customs Service's Fund for Disfavoured Children.
To boost its sales of Carlie in the United Kingdom, Dolls Us plans to send buyers of this doll, upon their request, short movies on the wondrous adventures of Carlie. These movies are sent from Richland by e-mail. Dolls Us is concerned aboutthe rumour that the European Commission is considering the introduction of a customs duty on movies imported into the European Union via the Internet.
The Government of Newland, eager to promote the development of its toy industry, has announced that they will introduce an export duty of 10 per cent ad valorem on plastic body parts of dolls. Dolls Us is ‘disappointed’ by the information received from the UK’s Customs Service, and concerned about the rumours on the ‘movies duty’ as well asabout Newland's planned introduction of an export duty. It has asked its law firm, Gandhi, Bhatia & Ganesan, an Indian law firm with offices in London, for legal advice on the WTO-consistency of the various measures referred to above. You are a junior lawyer working at Gandhi, Bhatia & Ganesan and you have been tasked with preparing a note on the legal advice sought by Dolls Us. The senior partner of the law firm has warned you not to forget to check the EU’s Goods Schedule as well as the EU’s Common Customs Tariff.
In: Economics
Explain “impossible trinity” or “trilemma”? How do you locate CBRT (Central Bank of the Republic of Turkey) ? Please put your reasonings?
In: Economics
22-explain what the gravity model of trade predict are the major predictors of trade flows between countries. discuss how this model helps to explain trade flows using three of its leading trade partners as examples.
In: Economics
Describe how forwards, futures, options, and swaps can be used to hedge your foreign risk.
In: Economics
In: Economics
Consider an individual who allocates his total hours of work per week between the household and a competitive market. The available total number of hours of work is fixed at 50 per week. In the market the wage (w) is equal to the value of marginal product of labour. The value of marginal product of labour in the market (VMPM) and the value of marginal product in the household (VMPH) are given by the following equations:
VMPM = 100 - LM
VMPH = 80 - 2LH
where LM is the number of hours worked in the market and LH is the number of hours worked in the household
a) Find the number of hours worked in the market and the household per week, in absence of any taxes.
b) Suppose that a 20% tax is levied on wage in the market. Find how the hours worked in the market and the household change after the tax. What is the excess burden of the tax?
In: Economics
In: Economics
(a) Using an appropriate diagram Illustrate and explain the welfare effects of a unit tax on a commodity within the framework of indifference curves analysis
(b) Illustrate on the same diagram, the welfare effects of a lump-sum tax that generates the same amount of tax revenue as in (a). (1.5 marks)
(c). Are the welfare effects the same? Is any of the taxes efficient? Explain why or why not. (1.5 marks)
In: Economics
Market demand and supply for a commodity are given by the following equations:
Demand: X = 30 – (1/3) P
Supply: X = -2.5 + (1/2) P where X= quantity (units), and P=price per unit ($)
Suppose that the government is planning to impose a tax on this commodity and considering the following two options:
Option 1: A unit tax of $15 Option 2: An ad valorem tax of 20%
a) Find the tax incidence on buyers and producers, and the tax revenue of the government under each the two options
b) Compare the two options in terms of their welfare costs
In: Economics
Describe 3+ techniques you would use to tell someone bad news, in a sensitive way (e.g. family, friends).
In: Economics