If Panama is open to international trade in maize without any restrictions, it will importtons of maize.Suppose the Panamanian government wants to reduce imports to exactly 40 tons of maize to help domestic producers. A tariff of Sper tonwill achieve this.A tariff set at this level would raise Sin revenue for the Panamanian government. 4. Effects of a tariff on international tradeThe following graph shows the domestic supply of and demand for maize in Panama. The world price (Pw) of maize is $260 per ton and is representedby the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maizeand that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfydomestic demand as much as possible before any exporting or importing takes place.(?500Domestic DemandDomestic Supply470440410380350320290P26023020020406080100 120140180180200QUANTITY (Tons of maize)If Panama is open to international trade in maize without any restrictions, it will importtons of maize.Suppose the Panamanian government wants to reduce imports to exactly 40 tons of maize to help domestic producers. A tariff of $per tonPRICE (Dollars per ton)

If Panama is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Panamanian government wants to reduce imports to exactly 40 tons of maize to help domestic producers. A tariff of s per ton will achieve this. A tariff set at this level would raise S in revenue for the Panamanian government.

If Panama is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Panamanian government wants to reduce imports to exactly 40 tons of maize to help domestic producers. A tariff of s per ton will achieve this. A tariff set at this level would raise S in revenue for the Panamanian government.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The analysis of a quota implies that .... please select one or more : a) The effect of a quota on trade is the same as a tariff. b) A quota will cause the same deadweight losses as a tariff. c) States should prefer quota instead of tariff. d) A quota increases imports if it is associated with high price elasticity of demand. e) When a quota is applied, the consumer surplus decreases but the producer surplus does not increase because only the state benefits from the quota.
Home's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4+ (1/20)Qs Foreign's demand curve for wheat is P * = 8 - (1/20) Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR= Adding these effects together AWAPS + ACS + AGR =
To determine: The impact of export subsidy.
Consider the pharmaceutical market in the US. The demand is Q = 200 - 2P Q P while supply is 2 40s Q P. The free trade price is 25. A) Calculate consumer surplus, producer surplus, total surplus, and imports under free trade. Illustrate all of these on a fully labelled graph. B) Suppose that the US puts a tariff of 6 on pharmaceuticals. When it does this, the free trade prices falls to 24. Calculate consumer surplus, producer surplus, tariff revenues, total surplus and deadweight loss under the tariff. Illustrate all of these on a fully labelled graph. C) Is the country better off under the tariff or free trade? How do you know?
Assume that you have been hired by an International Organization to be consulted on various issues that the country Motherland faces. For this exercise, assume that Motherland is a small agricultural economy. The biggest trading partner of Motherland is the United States. Unlike Motherland, the United States is a large industrial country. Assume Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government.Your explanation should not exceed 200 words.
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
Which of the following might be considered a cost to protecting domestic jobs in the steel producing industry by blocking steel imports? Less consumer surplus for those who use products made of domestic steel Fewer jobs in industries that use steel Higher prices of steel for domestic industries that use steel All of these might be considered costs
There is a country which produces cars. It costs $11,000 for the domestic producers to produce one car, but they are not competitive on the world market where these cars are sold at $10,000. There is free trade between this country and the rest of the world right now. The government is thinking about applying export subsidies to promote car export. As a government advisor, try to give a hint whether it is good idea or not? Who wins and who loses by applying the subsidies? How much subsidy would allow domestic producers to sell on the world market? Provide the arguments on which your advice is based!
The major export-promotion agency in the U.S. is: the State Department the Commerce Department the U.S. Export Administration the International Court of Trade the U.S. Export Control Agency
What is the effect of a tariff on consumer and producer surplus? Under which conditions is protectionism advisable? Discuss with reference to at least one case study and examine distributional consequences.
A country imposing a tariff can benefit in terms of social welfare if The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. The tariff revenue exceeds the sum of production and consumption distortion loss. The consumer surplus loss is less than the producer surplus gain. The terms-of-trade benefit exceeds the consumer surplus loss.
Export subsidy can be welfare improving trade policy for a domestic country if a) it cannot be welfare improving b) the country that implements it is large c) the country that implements it is small d) it is used for agricultural products