Show graphically and explain in words that for any tariff, there is an equivalent quota that...

Show graphically and explain in words that for any tariff, there is an equivalent quota that would give the same result.

What would be the difference, then, between the two types of trade barriers? Hint: It is not something you can see from the graph.

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Expert Solution

Rahul Sunny answered 1 year ago

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

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?

Suppose that instead of tariff, a quota is imposed, explain the disadvantages in terms of government...

Suppose that instead of tariff, a quota is imposed, explain the disadvantages in terms of government revenue, and consumer welfare.

How is the quota different for Americans than a 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?

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...

What is the difference between a tariff and a quota? Discuss the impact of tariffs on...

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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?

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Show graphically and explain in words that for any tariff, there is an equivalent quota that...

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

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

Suppose that instead of tariff, a quota is imposed, explain the disadvantages in terms of government...

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