Which of the following would help to reduce imports? Select one: a) A fall in quotas b) Increased borrowings c) Fall in subsidy to domestic firms d) A fall in tariffs e) Decreased import substitution
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Which of the following would help to reduce imports?
Select one:
a) A fall in quotas
b) Increased borrowings
c) Fall in subsidy to domestic firms
d) A fall in tariffs
e) Decreased import substitution
Step by step
Solved in 3 steps
- Problem 5. a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff? Estimate the value of imports with tariff c) Estimate Imports without tariff b) d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition. Price of rice P = PhP 73.75| Pw = PhP 70.00| C A D 0 25 50 B E F Domestic supply ↑ Tariff Domestic demand 100 125 World price Quanti of riceChina placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as a horizontal line at 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT), along with the quantities imported both with and without the tariff. Based on your graph, what…Assume that you have been hired by an International Organization to be consulted on variousissues that the country Motherland faces. For this exercise, assume that Motherland is a smallagricultural economy. (a) Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government. (b)The government of Motherland wants to jump start industrial production. Over time the main objective is to convert this agricultural economy into an industrial nation. On the basis of the experiences of Argentina and Singapore, what policies would you suggest?
- QUESTION 12 Mexico is an importer of rice. The world price of a kilo of rice is $10. Mexico imposes a $2-per-kilo tariff on rice. Mexico is a price-taker in the rice market. As a result of the tariff, Mexican consumers of rice become worse off and Mexican producers of rice become worse off. Mexican consumers of rice become worse off and Mexican producers of rice become better off. Mexican consumers of rice become better off and Mexican producers of rice become worse off. Mexican consumers of rice become better off and Mexican producers of rice become better off.Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the market for flat screen televisions.45) The General Agreement on Trade in Services (GATS) defines trade in service s the supply of a service through which of the following? a) Consumption abroad b) Cross-border supply c) Both A and B d) Neither A nor B
- Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.1) The loss of consumer benefits when a tariff imposed on imported consumer good is called: a) Consumer surplus b) Net-welfare gain c) Consumer deadweight cost d) Producer deadweight cost 2) Which one is not true about countries of the world? a) Only large countries involve in an international trade b) Openness of countries to international trade vary between countries c) Countries produce, exchange, and consume goods and services d) Economic development of countries is little affected by the extent of their engagement in international trade e) a and d10 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)
- Figure 7-2 Price (dollars per pound) $3.00 2.50 1.75 0.50 12 18 26 38 45 U.S. Supply U.S. Demand Quantity of coffee (millions of pounds) Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Refer to Figure 7-2. Without the tariff in place, the United States consumes 12 million pounds of coffee. Pw+tariff World price (P 26 million pounds of coffee. 33 million pounds of coffee. 45 million pounds of coffee.if u.s. quotas on imported goods were eliminated: a) the supply of sugar in the U.S. would shift to the left and the prices would rise b) the world price of sugar would rise c) the demand for sugar in the U.S. would shift to the left and prices would fall. d) the supply of sugar in the U.S. would shift to the right and sugar prices would fall e) None of the answers are correct.Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price (Dollars per ton) 100 200 300 400 PRICE (Dollars per ton) 800 700 600 500 400 300 200 100 500 600 700 0 0 2 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. ? 6 (Domestic) 0 0 1 2 3 5 Quantity Supplied The new equilibrium is (Domestic plus Imports) 0 8 10 12 14 16 18 20 QUANTITY (Tons of steel) With free trade, the equilibrium price of steel is $ 4 8 12 16 20 24 tons are supplied by U.S. producers, and tons are imported.…