Question

In: Economics

Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using...

Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using a graph explain the following

What are the effects of imposing a tariff on Consumer Surplus?

What is the effect of imposing a tariff on Producer Surplus?

What is the effect of imposing a tariff on Government Revenues?

What is the overall effect of the tariff?

Do you think imposing high tariffs is a good idea? Why?

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using...
Suppose Mexico imposes a tariff on imports. Import Prices increase from Pw to Pt= Pw+t Using a graph explain the following A)What are the effects of imposing a tariff on Consumer Surplus? B)What is the effect of imposing a tariff on Producer Surplus? C)What is the effect of imposing a tariff on Government Revenues? D)What is the overall effect of the tariff? E)Do you think imposing high tariffs is a good idea? Why?
____   73.   If a nation imposes a tariff on imports, a. part of the tax is...
____   73.   If a nation imposes a tariff on imports, a. part of the tax is paid by foreign exporters. b. the entire tax is paid by foreign exporters. c. none of the tax is paid by foreign exporters. d. the tax has no impact on the profits of foreign exporters. ____   74.   Exchange rates determined by the forces of demand and supply are called a. fixed exchange rates. b. floating exchange rates. c. equilibrium exchange rates. d. dirty exchange...
A country imposes a tariff on imports from abroad. How does this action change the long-run...
A country imposes a tariff on imports from abroad. How does this action change the long-run real exchange rate between the home and foreign currencies? How is the long-run nominal exchange rate affected? Will this import restriction necessarily improve the home country’s trade balance in the long-run? Explain carefully.
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?
1) A decrease in an import tariff will result in ___ A) an increase in price,...
1) A decrease in an import tariff will result in ___ A) an increase in price, but a decrease in quantity purchased. B) a decrease in price and a decrease in quantity purchased. C) a decrease in imports, but an increase in domestic production. D) an increase in imports, but a decrease in domestic production 2) The largest component of GDP is A) tax revenue B)the nation's capital stock C) CAPX spending D) consumer spending E) government spending 3) When...
Explain how a tariff reduction leads to an increase in the quantity of imports and a...
Explain how a tariff reduction leads to an increase in the quantity of imports and a decrease in equilibrium price. Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide. You have been placed in charge of trade policy for the U.S. Suppose corn is a crop that is doing well and the export market is beginning to expand. Corn production is considered an infant industry. Corn producers come to you and ask for tariff protection...
1. Explain how a tariff reduction leads to an increase in the quantity of imports and...
1. Explain how a tariff reduction leads to an increase in the quantity of imports and a decrease in equilibrium price. 2. Explain how trade barriers raise wages in protected industries by reducing average wages economy-wide. 3. You have been placed in charge of trade policy for the U.S. Suppose corn is a crop that is doing well and the export market is beginning to expand. Corn production is considered an infant industry. Corn producers come to you and ask...
What is import quota? Why do some governments use it instead of just using tariff to restrict imports by the same amounts?
What is import quota? Why do some governments use it instead of just using tariff to restrict imports by the same amounts? Is it because quota brings a bigger national gain than tariff?
Consider a small country (perfect competition) applying a tariff, t, to imports of a good a....
Consider a small country (perfect competition) applying a tariff, t, to imports of a good a. Suppose that the country currently has a tariff on imports, but decides to reduce it from t to t’. Draw graphs for the Home and import markets and illustrate this change. b. What happens to the quantity of goods produced at Home and their price? What happens to the quantity of imports? c. Are there gains or losses to domestic consumer surplus due to...
*** working with theory of Import tariffs Consider a large country applying a tariff t to...
*** working with theory of Import tariffs Consider a large country applying a tariff t to imports of a good. (a) Draw the Home market and World market supply-demand diagram. Clearly label the amount of import in the free trade equilibrium and equilibrium with a tariff. (b) How does the export supply curve in world market compare with that in the small country case? Explain briefly why they are different. (c) Explain how the tariff affects the price paid by...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT