Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 33, Problem 2WNG
(a)
To determine
The level of imports at ‘Pw’.
(b)
To determine
The level of import at ‘Pw+T’.
(c)
To determine
The loss in
(d)
To determine
The gain in
(e)
To determine
The revenue received as a result of tariff.
(f)
To determine
The net loss to society as a result of tariff.
(g)
To determine
The net benefit to society moving from tariff to non-tariff.
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Students have asked these similar questions
An important difference between tariffs
and quotas is that tariffs
Select one:
a. help domestic producers
b. stimulate international trade
c. None of the above
d. generate tax revenue for the government
e. raise the price of the good
If Indonesia (which is a small country) imposes an import tariff on textile imports, we can conclude that:(a) The world price of textile rises, and Indonesia imports less.(b) The world price of textile stays constant, and Indonesia imports less.(c) The world price of textile falls, and Indonesia imports less.(d) The world price of textile stays constant, and Indonesia imports the same as before.
Explain why.
pnal Economi
2. In the accompanying figure, P is the world price and
Pw + T is the world price plus a tariff. Identify the
following:
W
W
a. The level of imports at P
b. The level of imports at Pw+ T
W
W
c. The loss in consumers' surplus as a result of a tariff
d. The gain in producers' surplus as a result of a tariff
e. The revenue received as a result of a tariff
f. The net loss to society as a result of a tariff
g. The net benefit to society of moving from a tariff to no
tariff
Chapter 33 Solutions
Economics (MindTap Course List)
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Similar questions
- Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product, Pt is the domestic price with a tariff, and Pc is the world price of that product. Open this image in a program or approximate this drawing on paper and color in the area that represents gains from trade if the country imposes a tariff .arrow_forwardWhich scenario describes the operation of a tariff? Angola opens up trade with the world corn market and decides to maintain its previous market price. Consumers in Turkey, who pay $4 per cup of tea, demand that the government open up trade with the world market because they know the world price is $2 per cup. Ireland taxes the import of potatoes in order to keep domestic farmers in business. Norway becomes an exporter of fireworks after it opens up trade with the world market and realizes its market price is lower than the world price. Which is NOT an effect of a tariff? deadweight loss a domestic market price above world market price Activate Windows Go to Settings ho activate Win increased demand decreased importsarrow_forward12. If the free trade price is lIP and this country imposes a trade tariff of $3, what will be the resulting net welfare loss to the economy? a)$3 b)$27 C)$13.5 d)$40.5 e)$9 13. if the free trade price is IP and this country imposes an import quota of 6 units, what will be the welfare loss to this economy? a)$3 b)$27 c)$13.5 d)$40.5 e)$18arrow_forward
- Which of the following is NOT a reason why countries impose tariffs on imports? A. Protect domestic industries B. Retaliation C. National security D. None of the abovearrow_forwardWhich of the following is NOT a law that impacted U.S. tariffs? A. Food, Drug, and Cosmetic Act B. Smoot-Hawley Act C. McKinley Act D. Fordney-McCumber Actarrow_forwardExplain the effects of tariff on the current account of an importing country.arrow_forward
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