EBK ECON: MACRO4
4th Edition
ISBN: 9781305562097
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 17, Problem 2.6PA
Sub-part
A
To determine
The net gains and losses that each of the stakeholders face while imposing the trade restrictions.
Sub-Part
B
To determine
The deadweight loss from the diagram.
Sub-Part
C
To determine
The response to such policies from the industries that use U.S steel.
Sub-Part
D
To determine
The government revenues generated from this policy.
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8) Suppose the United States imposes a tariff or quota on sugar imports. For each of the following, enter the letter G ifit will gain from the tariff or quota or enter the letter L if it will lose from the tariff or quota.Domestic sugar producers and their workers _______Consumers _______Industries that use sugar and their workers _______9) _______________ are goods and services produced domestically but sold to other countries. _______________ are goods and services bought domestically but produced in other countries._______________ are taxes imposed by a government on imports of a good into a country.
a,Tarrifs
b, exports
c,quotas
D,Imports
10) Which of the following are non-tariff barriers to trade?National security grounds.Health and safety requirements.Embargoes.All of the above.
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- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardD Question 10 Suppose before tariff, the price of imported avocado from Mexico to United States is $1.06 and 898 avocados are imported. After a 15 percent tariff, number of avocados is decreased to 772. What's the dead weight loss caused by this tariff? [Hint: Round your answer to 2 decimal placesarrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- 8. The arguments for restricting trade Suppose there is a policy debate regarding the United States imposing trade restrictions on imported tires: A congresswoman from a state with several tire factories argues that the government should impose a tariff on tires because they are a necessary input into the production of various weapons. Free trade would make the United States overly dependent on foreign countries for the supply of tires. In case of a war, the United States might not be able to make or purchase enough tires and, therefore, would not be able to make enough weapons to defend itself. Which of the following justifications is the congresswoman using to argue for the trade restriction on tires? O Saving domestic jobs argument O Low foreign wages argument O National defense argument O Infant industry argument O Foreign export subsidies argumentarrow_forwardIf the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $8.00 per unit? Quantity of Barrels Supplied (Millions) Quantity of Barrels Demanded (Millions) 0 2 4 6 8 10 12 The amount of imports after the $8.00 per-unit tax is responses as a whole number.) ges Price per Barrel Get more help. $4 8 Using the table above, after the imposition of the $8.00 per-unit tax, the new quantity supplied is 4 million barrels and the new quantity demanded is 12 million barrels. (Enter your responses as a whole number.) 12 16 20 24 28 14 13 12 11 10 9 8 million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Clear all (Enter your more less Check answer (e)arrow_forwardNonearrow_forward
- Consider a small country that exports steel. Suppose that a "pro-trade" government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. 1. How does this export subsidy affect the 1. domestic price of steel, 2. the quantity of steel produced, 3. the quantity of steel consumed, and 4. the quantity of steel exported? 2. How does it affect 1. consumer surplus, 2. producer surplus, 3. government revenue, and 4. total surplus? 3. Is it a good policy from the standpoint of economic efficiency? (Hint: the analysis of an export subsidy is similar to the analysis of a tariff)arrow_forward2. Uganda is a small of Uganda country. The government wants to protect domestic producers of rice by imposing a quota, an ad valorem tariff or an equivalent specific tariff. The three trade barriers would be equivalent in the sense that either one will initially limit imports to a given amount. Once either of these measures is imposed, the government will not switch to a different measure or change its magnitude. Suppose the world supply of rice (relative to the world demand for rice) is expected to increase in the future. You are a lobbyist for producers of rice in Uganda and you only care about their interests. Which trade barrier would you advocate on their behalf - a quota, an ad valorem tariff, or a specific tariff? Which one would you advocate next? Explain carefully using a numerical example. (Feel free to use a graph as well if you want.) (Consider ONLY the interests of PRODUCERS of rice in Uganda.)arrow_forwardPrice (dollars per shirt 44 40 36 32 28 24 20 16 12 0 8 16 24 32 40 48 56 64 Quantity (millions of shirts per year) D The figure shows the market for shirts in the United States, where D is the U.S demand curve and S is the U.S. supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, U.S. producers' gain; $128 million O loss; $32 million O loss: $64 million O gain; $80 million from the tariff isarrow_forward
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