The U.S. government has threatened to increase tariffs on European luxury automobiles because of a trade imbalance between the United States and the European Union.For American automakers like GM and Ford, this action would reflectMultiple ChoiceA. reactive strategy that would harm the technological environmental force.B. proactive maneuver to manipulate the social environmental force.C. positive result from regulatory environmental forces.D. positive response to a technological environmental force.E. negative impact as a result of adverse competitive, regulatory, and technological environmental forces

The question is asking us to identify the impact of a potential increase in tariffs on European…

Answered: The U.S. government has threatened to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The figure given below shows the national market for mopeds in a small country. Då and Så are the domestic demand and supply curves of mopeds respectively. Price X 0.5 0.6 1.2 1.4 $800 $750 0 $140 $125 C. The figure given below shows the marginal external benefit (MEB) curve of the country from the domestic production of mopeds. Marginal External Benefit 0 0.5 0.6 Sa a. a gain of $5.75 million. b. a loss of $20.75 million. a loss of $15 million. d. a gain of $13.25 million. -Domestic price line after tariff World price line Da Quantity (Millions of mopeds per year) MEB The overall impact of the tariff on the nation would be: Quantity (Millions of mopeds per year)
Suppose Hawi lives alone. She has two pet hamsters; she likes the hamsters because they are cute. But cleaning their cage every day is a hassle. In this case, Hawi's hamsters entail: A. an external cost B. a negative externality C. an external benefit D. neither an external cost nor an external benefit
The figure below shows the national market for mopeds in a small country. Dd and Sd are the domestic demand and supply curves of mopeds, respectively. Initially, the country's government has a tariff on imports of mopeds. Price S800 $750 0 03 06 Marginal External Benefit $140 $125 0 1.2 14 0.3 0.6 Sa The figure below shows the marginal external benefit curve (MEB) of the country from the production of domestic mopeds. -Domestic price line after tariff World price line DA Quantity (Millions of mopeds per year) MEB Quantity (Millions of mopeds per year) What will be the impact on the national well-being if, instead of imposing a tariff of $50 per unit, the government provides a subsidy of $50 per unit to the domestic manufacturers of mopeds?
The free rider problem arises when a good is both rival and non-excludable; rival non-excludable; both rival and non-excludable both rival and non-excludable; excludable rival; both rival and non-excludable and the tragedy of the commons arises when a good is
Label the following phrases Normative or positive: The Austrian government should protect Austrian taxi manufacturers by install a tax. A tax on taxi imports would be inefficient. The tax revenue earned by the Austrian government is more important than the inefficiency caused by the tax. The tax revenues should be used to subsidize Austrian taxi rides, making them more economical. _______________________________________________________________________________________ In Montana, the median earnings per trip for an Uber driver is $29.34, the average earnings/ trip for a Lyft driver is $28.62, and the average earnings/ trip for a taxi driver is $17.22. Optimal behavior assumed, what is the opportunity cost of the driver’s employment decision per ride? Assume the driver can only work for one company at a time.
When people cannot be prevented from using a good, and it is free of charge to everyone, then that good is classified as being a ____________ non-excludable (pick this!) free rider. non-excludable. non-avoidable.
Fish that swim in international waters are a common good that are freely available toanyone who wants to catch them, but this leads to the problem of over-fishing. At theheart of this problem lies an externality. Using appropriate diagrams andaccompanying discussion, show both how and why this over-fishing takes place. Inyour explanation, identify the source of the externality.
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Price
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Define the concept of a negative externality and explain the nature of the negative externality in the fishing markets i.e. describe how the self-interested actions of a fishing company might adversely affect third parties without their consent.
a. When a firm imposes an external social cost (negative externality), the government should impose a tax on production equal to the externality cost to ensure that the market will achieve the socially optimal outcome. Select one: True False b. The socially optimal level of emissions of most pollutants is zero. Select one: True False c. Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit. Select one: True False

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