Economic incentive.

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Answer 1

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

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Students have asked these similar questions

In 2019, Japan had a tariff on canola oil imports from Canada of 13.2 yen per kg. This same year, Japan imported approximately 35 million kg of canola oil from Canada. How much tariff revenue did the Japanese government generate in 2019? (Do not include the extra zeros for millions in your answer.)

Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create a great deal of air pollution. The U.S. government, concerned about the quality of air, would like to see fewer Russian automobiles and more cleaner-running American automobiles on the road. What is the nature of the market failure that would justify the U.S. government taking some action against the importation of Russian automobiles? Explain why imposing a tariff is a second-best policy to employ in this case and what policy choice would be more efficient if: i) US carries out its own solution; ii) the two countries governments cooperate.

All of the following statements about import tariffs are true except Group of answer choices they result in countries selling the product at a lower price to domestic consumers they reduce the volume of trade and the gains from trade they limit specialization and the division of labor they yield revenue for the government that levies tariffs

Answer 2

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

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Answer 3

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 6

Chapter 1, Problem 1TC

To determine

Economic incentive.

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 7

Chapter 1, Problem 1TC

To determine

Economic incentive.

Answer 8

Expert Solution & Answer

Explanation of Solution

In general, the domestic firm sets up its production units with the foreign country due to the availability of lower wages and less regulations. These two major factors are giving incentive to move the investment from domestic country to rest of the world. This in turn reduces the job generation capacity in the domestic country.

When the tariff increases to 45%, then it increases the price of goods that produced in the foreign country. If the same good is produced within the country, then the cost of good is lower. The firms would find that it would be a benefit if it sets up production units in domestic country to meet its domestic demand. Thus, 455 tariffs serve as an incentive for firms to relocate their production unit within the domestic country.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Economic incentives: Economic incentive refers to the additional benefit provided in order to achieve the desired economic activity and it also motivates an individual to perform an economical action.

Answer 12

Ch. 1.A - Prob. 1PA Ch. 1.A - Prob. 2PA Ch. 1.A - Prob. 3PA Ch. 1.A - Prob. 4PA Ch. 1.A - Prob. 5PA Ch. 1.A - What is the area of the triangle shown in the...Ch. 1.A - Prob. 7PA Ch. 1 - Prob. 1TC Ch. 1 - Prob. 2TC Ch. 1 - Prob. 1.1.1RQ

Economic incentive.

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Economic incentive.

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