Problem 4 “An import quota and a tariff have exactly the same effect on price, and...

Problem 4 “An import quota and a tariff have exactly the same effect on price, and bring the same gains and losses, provided that the import quota restricts imports just as much as the tariff.” Indicate one situation in which this statement is true, and another situation in which this statement is false.

Expert Solution

False

Rahul Sunny answered 1 year ago

4) How does a tariff affect the government's revenue? How does an import quota affect the...

4) How does a tariff affect the government's revenue? How does an import quota affect the government's revenue? 5) Discuss the reasons why we see trade restrictions. Are any of these reasons valid? 6) Two arguments used to promote trade barriers are the infant-industry argument and the dumping argument. Explain each of these arguments and evaluate whether each one has any flaws.

What do the welfare effects of an import quota differ from those of import tariff?

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?

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.

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?

2. (i) First describe in general, a tariff and an import quota. (ii) What are the...

2. (i) First describe in general, a tariff and an import quota. (ii) What are the primary differences between them? (iii) Using a diagram for each, show how an increase in demand would affect such macroeconomic variables as (a) the price, (b) imports, (c) domestic production and (d) government revenue, much as we did in class. Be sure to show these effects on your two graphs.

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?

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?

The redistributive effect of an import tariff is the transfer of income from the domestic a....

The redistributive effect of an import tariff is the transfer of income from the domestic a. producers to domestic buyers of the good. b. buyers to domestic producers of the good. c. buyers to the domestic government. d. government to the domestic buyers 25. An importer of computers is required to pay a duty to the government of $100 per computer regardless of the price of the computer. Which type of tariff is described in this example? a. ...

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...

Question