1- Why is a quota more detrimental to an economy than a tariff that results in...

1- Why is a quota more detrimental to an economy than a tariff that results in the same level of imports as the quota? What is the net outcome of either tariffs or quota for the world economy?

2-“The potentially valid arguments for tariff protection—military self-sufficiency, infant industry protection, and diversification for stability—are also the most easily abused.” Why are these arguments susceptible to abuse?

Expert Solution

Rahul Sunny answered 1 year ago

How is the quota different for Americans than a tariff?

Why does a quota generate a larger loss to the importing country than a tariff that...

Why does a quota generate a larger loss to the importing country than a tariff that restricts imports to the same quantity? (b) Some U.S. politicians claim that China’s trade policies are unfair to the United States, and that a large tariff should be placed on Chinese imports to protect U.S. workers and industries. Why might such a policy sound better than it actually is in practice? What are the dangers of imposing large taxes on Chinese imports?

1. Explain why enacting a quota may result in lower total surplus than a tariff, even...

1. Explain why enacting a quota may result in lower total surplus than a tariff, even if they have the same effect on imports and the domestic price. 2. Explain what is meant by factor price equalization. In which model does factor price equalization occur? Why does factor price equalization occur?

Q3. Which is a more restrictive trade barrier—an import tariff or an equivalent import quota? Why...

Q3. Which is a more restrictive trade barrier—an import tariff or an equivalent import quota? Why did the U.S. government in 1982 provide import quotas as an aid to domestic sugar producers?

A Tariff Rate quota: Has a lower tariff rate on goods shipped below the quota and...

A Tariff Rate quota: Has a lower tariff rate on goods shipped below the quota and a higher rate on goods shipped once they exceed the quota Charges a tariff on natural resources Sets a quota on natural resources Sets a quota on natural resource and a tariff on manufactured goods Group of answer choices

Why is tariff preferred to quota if protectionist polices are unavoidable. Critically evaluate. (30marks) Urgent!!

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?

What is import quota? Why do some governments use it instead of just using tariff to...

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?

1. For small countries, free trade results in a higher level of national welfare than tariff...

1. For small countries, free trade results in a higher level of national welfare than tariff protection. a. True b. False 2. Suppose that Germany levies a tariff on oranges, but none are grown in Germany. This tariff has a. both a protective effect and revenue effect. b. no effects on trade. c. only a revenue effect. d. only a protective effect. 3. Tariff avoidance is the legal utilization of the tariff system to one's own advantage in order to...

6. What is a tariff and what is a quota in international trade? (a) In Tessland,...

6. What is a tariff and what is a quota in international trade? (a) In Tessland, suppose the domestic demand curve for sugar is given by: P = 16 - 0.05Q and the domestic supply curve is given by: P = 4 + 0.05Q: i. In the absence of any trade, what is the equilibrium price and quantity of sugar? How much are the consumer surplus and domestic producer surplus? ii. Suppose the equilibrium price of sugar in the world...

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