Policymakers in a small country impose a specifictariff of $2.00 per unit. Prior to the tariff thecountry imported 10,000 units and after the tariff8,000 units. The redistributive effects of the tariffare:Select one:a. such that $16,000 is forward shifted ontodomestic consumers.b. impossible to determine with the informationgiven.c. shared equally between domestic producersand domestic consumers.d. such that $4,000 is backward shifted ontodomestic producers.

Tariff leads to redistributive effect in the tariff-imposing country. It signifies the cost of…

Answered: ariff of $2.00 per unit. Prior to the…

ariff of $2.00 per unit. Prior to the tariff the puntry imported 10,000 units and after the tariff ,000 units. The redistributive effects of the tariff re:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Protective Tariffs

A tariff is a kind of tax that is charged on exported and imported items. It means tariff is charged on both kinds of goods i.e., exported and imported. However, some goods may be exempted from this kind of tariff. Protective Tariffs refer to the charges which a country charged on imported goods to protect its domestic market. It also protects countries Industrialists in their Production. So, that their markets remain intact and do not get dumped by outside supply.

Question

Policymakers in a small country impose a specific
tariff of $2.00 per unit. Prior to the tariff the
country imported 10,000 units and after the tariff
8,000 units. The redistributive effects of the tariff
are:
Select one:
a. such that $16,000 is forward shifted onto
domestic consumers.
b. impossible to determine with the information
given.
c. shared equally between domestic producers
and domestic consumers.
d. such that $4,000 is backward shifted onto
domestic producers.

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