An economist finds a magic lantern and is granted one wish; she wants to choose the one policy that will improve overall economic surplus the most. Which policy will she choose? O Institute federal agricultural price floors for US farmers to make them more competitive with imports O Pass a constitutional amendment mandating free international trade (i.e. removal of all import/export tariffs and elimination of all import quotas) O Implement a $15/hour Minimum Wage to lift poor workers out of poverty O Mandate that imported goods must contain at least 40% US-made parts in order to promote US manufacturing jobs and reduce unemployment

An economist finds a magic lantern and is granted one wish; she wants to choose the one policy that will improve overall economic surplus the most. Which policy will she choose? O Institute federal agricultural price floors for US farmers to make them more competitive with imports O Pass a constitutional amendment mandating free international trade (i.e. removal of all import/export tariffs and elimination of all import quotas) O Implement a $15/hour Minimum Wage to lift poor workers out of poverty O Mandate that imported goods must contain at least 40% US-made parts in order to promote US manufacturing jobs and reduce unemployment

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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Think about the mobile-market is in equilibrium. Suppose that, as part of a trade policy, the government imposes the tax on mobile-import. Will this affect the supply or the demand? Why? How this will affect the consumer surplus and producer surplus? Show graphically with before- and after-effects on the same graph. How will this change the equilibrium price and quantity of mobile? Explain your reasoning.
Submi Question 15 of 20 > The effects of a tariff are O identical to the effects of a quota, except that the price of the good is higher. O reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price. Activate Windows Hi LAPTOP LOGIN
Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the total amount that farmers can sell to 200 000 kilos. What is the maximum price at which this quantity could be sold?| b. What would be the farmers' total revenue as a result of the quota? What if this government decides, instead of using a quota, to introduce a price floor of $1.20 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? Surplus/shortage: Total revenue: $ C. 2.0 1.6 1.2 0.8 0.4 100 200 300 400 500 600 Quantity of blueberries (thousands of kilos) FIGURE 3.20 Price
raded Assignment | Read Chapter 5 Back to Assignment Attempts: ܀ Average: 14 2. Comparing tariff, quota, and subsidy Aa Aa Which of the following statements regarding the effects of a tariff, quota, and subsidy are correct? Check all that apply. A subsidy involves smaller sacrifices in national welfare than occur under an equivalent tariff or quota. The direct cost of the subsidy is borne by foreign producers. A subsidy yields the same result for domestic producers as does an equivalent tariff or quota, but at a higher Copyright Notices cost. Tariffs and quotas distort choices for domestic consumers and cause less efficient home production. Terms of Use Due Tuesday 11.03.15 at 11:00 PM Privacy Notice Grade it Now Security Notice Save & Continge Accessibility
Explain how an export subsidy is theoretically meant to work. Think of the application to “infant industry
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