Trade barrier and theory of trade.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

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!

Students have asked these similar questions

Problem 1 Regression Discontinuity In the beginning of covid, the US government distributed covid stimulus payments. Suppose you are interested in the effect of receiving the full amount of the first stimulus payment on the total spending in dollars by single individuals in the month after receiving the payment. Single individuals with annual income below $75,00 received the full amount of the stimulus payment. You decide to use Regression Discontinuity to answer this question. The graph below shows the RD model. 3150 3100 3050 Total Spending in the month after receiving the stimulus payment 2950 3000 74000 74500 75000 75500 76000 Annual income a. What is the outcome? (5 points) b. What is the treatment? (5 points) C. What is the running variable? (5 points) d. What is the cutoff? (5 points) e. Who is in the treatment group and who is in the control group? (10 points) f. What is the discontinuity in the graph and how do you interpret it? (10 points) g. Explain a scenario which can…

Problem 2 Difference-in-Difference In the beginning of 2005, Minnesota increased the sales tax on alcohol. Suppose you are interested in studying the effect of the increase in sale taxes on alcohol on the number of car accidents due to drinking in Minnesota. Unlike Minnesota, Wisconsin did not change the sales tax on alcohol. You decide to use a Difference-in-difference (DID) Model. The numbers of car accidents in each state at the end of 2004 and 2005 are as follows: Year Number of car accidents in Minnesota Number of car accidents in Wisconsin 2004 2000 2500 2005 2500 3500 a. Which state is the treatment state and which state is the control state? (10 points) b. What is the change in the outcome for the treatment group between 2004 and 2005? (5 points) C. Can we interpret the change in the outcome for the treatment group between 2004 and 2005 as the causal effect of the policy on car accidents? Explain your answer. (10 points) d. What is the change in the outcome for the control…

Environmental Economics

Answer 2

Question

Chapter 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

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 3

Question

Chapter 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

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 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

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 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

Answer 6

Chapter 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.

Economics Concept Introduction

Concept introduction:

Trade barrier: Trade barriers refer to the government-induced restrictions imposed usually on international trade.

Answer 7

Chapter 19, Problem 1FT

To determine

Trade barrier and theory of trade.

Answer 8

Expert Solution & Answer

Explanation of Solution

By removing the trade barriers, Japanese consumers would be better off, whereas the Japanese rice farmers would be worse off. The net gain would be positive according to the theory of trade; Japanese consumers would be better off than Japanese producers (who would be worse off). By the theory of politics, Japanese rice farmers would be lobbying against the reduction in trade barriers than consumers who would be favoring the reduction in barriers. The gains received per consumer are comparatively lower than the losses to producers. Thus, the producers will have a greater incentive to lobby against reductions in trade barriers.