The tariff willdecrease producer surplus but increase consumer surplus.increase producer surplus but decrease consumer surplus.increase both producer and consumer surplus.decrease both producer and consumer surplus.

A tariff is a tax on imported goods. It raises the price of imported products in the domestic…

Answered: The tariff will decrease producer…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter35: International Trade Restrictions

Section: Chapter Questions

Problem 3E

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Assume that you are consulting with a small country that imposes a tariff on a product that it produces. Ask the decision makers of the country to identify the incorrect statement from the ones below: They will have a consumer surplus decline. They will have a decline in producer They will have a decline of the quantity Their total fall in surplus will be more than their deadweight loss.
A tariff is: A tax on exported goods. A source of revenue to the exporting nation. A tax on imported goods. A tax on foreign property. A form of quota.
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.
A tariff is usually considered to be better than a quota because quotas hurt domestic producers; tariffs hurt foreign producers. tariffs produce tax revenue. tariffs help domestic producers more than quotas. quotas are inflexible. it does not distort trade as much.
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 rice
For a large country import tariffs will yield a price increase for domestic consumer that is A higher than the tariff itself B equal to the tariff itself C smaller than the tariff itself
Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
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.
When a country becomes an exporter of a good, domestic consumer surplus. and domestic producer surplus (a) increases; increases (b) decreases; decreases (c) increases; decreases (d) decreases; increases
Define tariff .
The aim of a tariff is to: (a) maximise total surplus. (b) protect domestic consumers. (c) protect domestic producers. (d) create deadweight loss.
One advantage of a tariff over a quota, from the perspective of the nation imposing it, is that a tariff decreases the domestic price increases the quantity of imports decreases the quality of imports raises tax revenue

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The tariff will decrease producer surplus but increase consumer surplus. increase producer surplus but decrease consumer surplus. increase both producer and consumer surplus. decrease both producer and consumer surplus.