Question
In: Economics
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
Solutions
Expert Solution
Option B.
- Given that US government imposes a quota on imports of a popular doll.
- When such a quota is imposed, then foreign firms can longer export easily.
- This will allow the domestic firm's to raise the price as imports fall.
- When imports fall, the quantity of doll imports purchased in the US will decrease.
Rahul Sunny answered 2 years agoRelated Solutions
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.
When the U.S. Government imposes a tariff on imports, 1. what happens to the price of...
When the U.S. Government imposes a tariff on imports,
1. what happens to the price of the imported good?
2. who pays the tariff?
3. who (which domestic businesses) gains from the tariff?
How?
4. how can American jobs be saved as the result of imposing
tariffs on American imports?
5. how can American jobs be lost as the result of
retaliation?
Your opinion: What would be your preferred trade policies?
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 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?
A surplus may occur if: a. the government imposes a price ceiling. b. the government imposes...
A surplus may occur if:
a. the government imposes a price ceiling.
b. the government imposes a price floor.
PLEASE ANSWER ONLY IF YOU ARE 100% CORRECT
“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...
A government that imposes a price floor above the equilibrium price of a good will cause:
A government that imposes a price floor above the equilibrium
price of a good will cause:
if the government imposes a tax on sugar, raising it's price by 25%, what is the...
if the government imposes a tax on sugar, raising it's
price by 25%, what is the measure of the economic loss suffered by
domestic households who consume sugar? Operationally, how would you
measure the amount of this loss? Might firms that process and sell
sugar suffer a loss, too? What is the measure of their
loss?
Suppose that the local government determines that the price of food is too high and imposes...
Suppose that the local government determines that the price of
food is too high and imposes a ceiling on the market price of food
that is below the equilibrium price in that locality. Predict some
of the consequences of this ceiling
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