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This is not a writing assignment, this is a multiple-choice question
Tariffs are taxes on imported items. The impact of tariffs can be variable. Which of the below statements is most likely to be INCORRECT for tariffs?
Group of answer choices
The government may gain temporarily from the taxes collected through the tariffs on imports.
The burden of the tariff is invariably borne by foreign imports.
Tariffs can lead to retaliation, and eventually, trade wars.
Tariffs drive up the cost of imported resources and consumer goods and thus end up hurting both domestic producers and consumers.
Tariffs help producers threatened by foreign competition and may keep such businesses alive, no matter how inefficient they may be.
Step by step
Solved in 2 steps
- Which of the following is TRUE about tariffs? Group of answer choices Tariffs increase the price of imported goods, which decreases demand. Tariffs cause imported product prices to fall. Tariffs cause demand for imported products to rise. Tariffs create strong relationships between trading partners.Which of the choices describes how the effects of import tariffs and import quotas are different? The domestic cost of an import tariff is larger than the domestic cost of a comparable import quota. Import tariffs create deadweight loss, whereas import quotas do not create deadweight loss. Quotas do not affect the equilibrium price, whereas tariffs do not affect the equilibrium quantity. Some foreign producers receive some of the benefits generated by an import quota.China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as a horizontal line at 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT), along with the quantities imported both with and without the tariff. Based on your graph, what…
- For many purposes, the use of a tariff is said by economists to be “second best.” This means that Group of answer choices Another policy exists that would accomplish the same purpose as the tariff at lower economic cost. The tariff does not help those with the highest incomes, but only those with the second highest. The tariff benefits the country only by making other countries worse off. The tariff cannot be beneficial for the country as a whole.Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the market for flat screen televisions.Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments
- Which of the following is TRUE about tariffs? Question options: Tariffs cause imported product prices to fall. Tariffs create strong relationships between trading partners. Tariffs increase the price of imported goods, which decreases demand. Tariffs cause demand for imported products to rise.Problem 5. a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff? Estimate the value of imports with tariff c) Estimate Imports without tariff b) d) Estimate tariff revenue production inefficiency and deadweight loss e) Estimate the additional producer surplus as a result of the tariff imposition. Price of rice P = PhP 73.75| Pw = PhP 70.00| C A D 0 25 50 B E F Domestic supply ↑ Tariff Domestic demand 100 125 World price Quanti of riceThe following graph shows the market for wheat in Canada, where Dc is the demand curve, Sc is the supply curve, and Pw is the free trade price of wheat. Assume that Canada is a relatively small producer of wheat, so changes in its output do not affect the world price of wheat. Also assume that Canada is currently open to free trade, and domestic consumers are able to purchase wheat at the world price with negligible transportation costs. Suppose a subsidy of $80 per ton is granted to exporters in Canada, allowing them to sell their products abroad at prices below their costs. Assume that trade restrictions are also put in place in order to prevent domestic consumers from buying wheat abroad at the world price. Use the grey line (star symbols) to indicate the world price of wheat plus the subsidy on the following graph. Then use the black point (plus symbol) to indicate the price of wheat in Canada and the quantity demanded at that price. Finally, use the tan point (dash symbol) to…
- The demand for cameras in a certain country is given by D = 8000 – 30P, where P is the price of acamera. Supply by domestic camera producers is S = 4000 + 10P. If this economy opens to tradewhile the world price of a camera is $50, and the government imposes a tariff of $30 per camera,what will be the quantity of cameras that this country imports or exports?The supply and demand for wheat in the small country Tinyland are: Qs = P and Qd = 400 – P, respectively. The world price of wheat is Pw = 100. a. Suppose the government imposes an import quota on wheat Q = 100. Find the price of wheat in Tinyland. Find the tariff per unit that generates the same volume of trade as the quota. Next suppose that instead of a quota or a tariff, the government levies a specific (per unit) consumption tax on wheat. Find the price of wheat in Tinyland when the tax is equal to the tariff you found in part ii and the quantity of wheat imported. NB: In contrast to a tariff, which is levied on all units produced abroad (imported), i. ii. a consumption tax is levied on all units sold in the domestic market regardless of where they were produced. b. Which of these three policies, i.e., quota, tariff, and consumption tax, do consumers and producers prefer? Give precise answers by evaluating the welfare of each group. Assuming that the government allocates quota…Suppose that a country implements a $20 tariff. Before the tariff, the country was importing 900 units of the good. After the tariff, the country imported 850 units of the good. What is the deadweight loss from the tariff? Assume that domestic supply and demand are linear.