A small country is facing the following domestic supply curve of a product: S - 200 + 20P, as well as the following domestic demand curve of a product: D = 400 - 20P. It can import it at a world price of 10 per unit. In addition, each unit of production yields a marginal social benefit of 10. The effect on welfare of an import tariff of 9 per unit is $ 480 420 O 320 O 480 O -180 500 O 420 O 180 500 O 320

A small country is facing the following domestic supply curve of a product: S - 200 + 20P, as well as the following domestic demand curve of a product: D = 400 - 20P. It can import it at a world price of 10 per unit. In addition, each unit of production yields a marginal social benefit of 10. The effect on welfare of an import tariff of 9 per unit is $ 480 420 O 320 O 480 O -180 500 O 420 O 180 500 O 320

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

57. Price, P 48- 44- 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- 0- 9 10 11 12 Quantity, Q Refer to the above figure: the importing country imposes a tariff that raises the domestic price from $16 to $24. But lowers the export price from $16 to $8. What is the gain in producer surplus? O A. $8 о в. $24 O C. $36 O D. $32 77. Price, P 487 44- 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- 0- 1 10 11 12 Quantity, Q 2 8. Refer to the above figure: The importing country imposes a tariff that raises the domestic price from $16 to $24. But lowers the export price from $16 to $8. As a result of the tariff government revenue is respectively. and the prodution distortion loss is O A. $16: $8 O B. $16: $4 OC. $32: $8 O D. $32: $4 30. CHAMPAGNE aLW= 5 hours per gallon a'Lw = 4 hours per gallon STRAWBERRIES НОМЕ FOREIGN aLc = 4 hours per pound a'lc = 2 hours per pound Which of the following statements are true? O A. Home has the absolute advantage in both strawberries and champagne and the comparative advantage…
Identify which type of nontariff trade barrier is used in each scenario in the following table. Tariff- Export Selective Rate Global Export Quota Quota Quota Quota Subsidy Scenario Canada permits 634,000 tons of beef to be imported each year. Brazil voluntarily reduces textile exports to Poland. The United States charges a tariff of 4.4¢ per kilogram for the first 634,621 tons of beef and a tariff of 6¢ per kilogram of beef in excess of that threshold. O Canada and Brazil agree that Canada produces 60% of its iDevices in Brazil and is allowed to export iDevices to Brazil tariff-free. Canada permits 634,000 tons of beef to be imported each year-300,000 tons must come from Poland, and 334 tons must come from Brazil. The U.S. producers of automobiles, an import-competing good, receive $100 million from the U.S. government for their production of 250,000 autos. The U.S. government makes a payment to domestic farmers of $1 on each bushel of apples that is exported. O Domestic Production…
Welfare Impact of Import Tariffs and Quotas PE PL+ PL A R 16 F Q₂ Q. H CODE Q'm Qm O D 18 18) Based on the graph above, the sources of welfare losses to society originating from the imposition of tariffs are: I a) Reduced imports. b) Increased production by less efficient domestic producers relative to foreign producers. c) Rent-seeking costs d) All of the above
Price Sus 23,000 22.000 21:000 20,000 19:000 Pus 123456789 Qos Refer to the above diagram, where SUS and DUS are the Unites States' supply and demand curves for autos and the world price is $20,000 per auto. The quantities of autos are in millions. With an import tariff of $1,000 per auto, the quantities sold by American and foreign producers, respectively, will be O 7 million autos and 3 million autos O 7 million autos and 4 million autos O 3 million autos and 7 million autos O 3 million autos and 4 million autos
A small country is facing the following domestic supply curve of a product: S = 200 + 20P, as well as the following domestic demand curve of a product: D = 400 - 20P. It can import it at a world price of 10 per unit. In addition, each unit of production yields a marginal social benefit of 10. The effect on welfare of an import tariff of 6 per unit is $. O -420 O 500 O -480 O 420 O 320 -500 O :180 O -320 480 O 180
To protect domestic producers, the Polish parliament is considering a measure which, starting December next year, would apply more stringent health standards and extensive administrative rules (more paperwork) against all imported beef products. Should the measure pass the Polish parliament, it would be an example of a country using a(n)- to protect its domestic market O import duty Otariff barrier non-tariff barrier. all the above are true
, Consider a nation that is too small to have any influence on world prices. The domestic timber demand and supply schedules for this nation are presented below. Price/board foot of timer $0.44 $0.40 $0.36 $0.32 $0.28 $0.24 Quantity Demanded (board feet) 0 million 20 million 40 million 60 million 80 million 100 million Graphically illustrate the pre-trade (domestic autarky) equilibrium price and equilibrium quantity. ..., Graphically illustrate the levels of domestic consumption, domestic production, and imports under free trade, given the world price for timber is $0.28/board foot. .) Graphically illustrate the impact of a specific import tariff of $0.04/board foot on the levels of domestic consumption, domestic production, and imports. Calculate the tariff revenue. Quantity Supplied (board feet) 100 million 80 million 60 million 40 million 20 million 0 million
Ma3. Suppose that Canada possesses the following industry (inverse) supply and demand curves for clothing (where quantity measured in pounds): ps= 5 + 20q pd= 130-5q. Now suppose that the world export supply curve is perfectly elastic and given by p = $65. Given the above, Canada will import__________ of clothing. Now suppose that Canada imposes a tariff of $10 per pound. Assume that all tariff revenue is rebated to consumers. In Canada, the new tariff-inclusive import price will be and there will be____________ a deadweight loss of______________ (a) 11.25 lbs; $70 per pound; $12.5. (b) 11.25 lbs; $65 per pound; $4.25. (c) 11.25 lbs; $60 per pound; $0. (d) 10 lbs; $75 per pound; $12.5. (e) 10 lbs; $65 per pound; $4.25
7. The demand and supply functions for a product in two large countries are given as: Country A Country B Qs = 56 - 4P Qu = 110 - 4P Q. = -4 + 2P Q= -10 + P The importing country imposes an ad valorem tariff of 20%. Calculate the change in consumer surplus, producer surplus, government revenue and social welfare after the imposition of tariff in the importing nation.
I need both solution plz...
when covid hit how did it effect tariff in the U.S. economy?
Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by P=100-3Q; the home supply of widget is given by P = Q. The world price is $40. Now let the government of Gatorland give a $15 per unit subsidy on each widget exported. What is the value of total subsidy payments to Gatorland's widget exporters? O $825 O $600 O $125 O $225