Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 15, Problem 18SQ
To determine
The differences between tariffs and quotas.
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Students have asked these similar questions
How does the imposition of an import tariff
by a country affect its domestic market for
the imported goods?
A. It increases the domestic supply, leading.
to lower prices.
B. It decreases the domestic supply, leading
to higher prices.
C. It increases the domestic demand, leading
to higher prices.
D. It decreases the domestic demand,
leading to lower prices.
One big difference between tariffs and quotas is that tariffsa. raise the price of a good while quotas lower it.b. generate tax revenues while quotas do not.c. stimulate international trade while quotas inhibit it.d. hurt domestic producers while quotas help them.
What would likely be the effect of a country
significantly lowering tariffs on agricultural
imports?
A. Domestic agricultural prices increase and
local production decreases.
B. Domestic agricultural prices decrease and
local production increases.
C. Domestic agricultural prices decrease and
local production decreases.
D. Domestic agricultural prices and local
production remain unchanged.
Chapter 15 Solutions
Micro Economics For Today
Ch. 15.4 - Prob. 1GECh. 15.6 - Prob. 1GECh. 15 - Prob. 1SQPCh. 15 - Prob. 2SQPCh. 15 - Prob. 3SQPCh. 15 - Prob. 4SQPCh. 15 - Prob. 5SQPCh. 15 - Prob. 6SQPCh. 15 - Prob. 7SQPCh. 15 - Prob. 8SQP
Ch. 15 - Prob. 9SQPCh. 15 - Prob. 10SQPCh. 15 - Prob. 11SQPCh. 15 - Prob. 1SQCh. 15 - Prob. 2SQCh. 15 - Prob. 3SQCh. 15 - Prob. 4SQCh. 15 - Prob. 5SQCh. 15 - Prob. 6SQCh. 15 - Prob. 7SQCh. 15 - Prob. 8SQCh. 15 - Prob. 9SQCh. 15 - Prob. 10SQCh. 15 - Prob. 11SQCh. 15 - Prob. 12SQCh. 15 - Prob. 13SQCh. 15 - Prob. 14SQCh. 15 - Prob. 15SQCh. 15 - Prob. 16SQCh. 15 - Prob. 17SQCh. 15 - Prob. 18SQCh. 15 - Prob. 19SQCh. 15 - Prob. 20SQ
Knowledge Booster
Similar questions
- If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur? a. U.S. employment will increase. b. The unemployment rate of the United States will decline. c. U.S. exports will increase because foreigners will want to buy more from U.S. producers. d. U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.arrow_forwardThe effect of imposing a tariff on a specific imported good is to the domestic price of the good and the domestic production of the good. Select one: a. increase; increase b. decrease; increase c. decrease; decrease d. decrease; to leave unaffected.arrow_forwardIf a nation that imports a good imposes a tariff, itwill increasea. the domestic quantity demanded.b. the domestic quantity supplied.c. the quantity imported from abroad.d. the efficiency of the equilibriumarrow_forward
- If a nation that imports a good imposes a tariff, it willincreasea. the domestic quantity demanded.b. the domestic quantity supplied.c. the quantity imported from abroad.d. all of the above.arrow_forwardAn 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 goodarrow_forwardIf an economy formerly in autarky opens to trade, and discovers that there is excess supply of a good from the world market, then they would expect to see domestic consumers buying __________ of a good, domestic producers selling __________, and at a __________ price. a. more; less; higher b. more; more; higher c. more; less; lower d. less; more; higher e. less; more; lowerarrow_forward
- Using a domestic-market demand- and supply-curve graph, a. show the impact of tariff on a small country's import price, domestic demand, domestic supply, import quantity, consumer surplus, producer surplus, government revenue, and total welfare; b. Is the country unambiguously worse off as a result of the tariff? c. In the same graph, show how to achieve the same import quantity with an import quota; d. When would the tariff and the import quota lead to the same amount of welfare change? e. How would the answers to (a) and (b) change for a large country?arrow_forwarda. In the absence of trade, what is the equilibrium price and equilibrium quantity? b. The government opens the wheat market to free trade and U.S enters the Turkish market, pricing wheat at $40 per ton. What will happen to the domestic price of wheat? What will be the new domestic quantity supplied and domestic quantity demanded? How much wheat will be imported from U.S? c. The government imposes a $10 per ton tariff on all imported wheat. What will happen to the domestic price of wheat? What will be the new domestic quantity supplied and domestic quantity demanded? How much wheat will now be imported from U.S? d. How much revenue will the Turkish government receive from the $10 per ton tariff?arrow_forwardA. As a protective measure, a quota is more effective than a tariff. B. A tariff seeks to discourage imports by raising the price of imported articles. Both A & B is True Both A & B is False A is True, B is False A is False, B is Truearrow_forward
- A country imposing a tariff can benefit in terms of social welfare if A. The terms-of-trade benefit exceeds the sum of production and consumption distortion loss. B. The tariff revenue exceeds the sum of production and consumption distortion loss. C. The consumer surplus loss is less than the producer surplus gain. D. The terms-of-trade benefit exceeds the consumer surplus loss. Explain Your answer using 200 words and a diagramarrow_forward1 of What is the effect of a tariff on the market price? Select one: a. It keeps the price of the exported good the same as the world price. b. It raises the price of the imported good above the world price. c. It lowers the price of the exported good below the world price. d. It lowers the price of the imported good below the world price.arrow_forwardWhat would happen to U.S. economic welfare if the U.S. eliminated tariffs on solar panel imports? A. U.S. economic welfare would increase because of the social gains from increased U.S. consumption of solar panels B. U.S. economic welfare would decrease because the social gains from increased U.S. production of solar panels would be less than the social costs associated with increased U.S. consumption of solar panels C. U.S. economic welfare would decrease because the social gains from increased U.S. consumption of solar panels would be less than the social costs inflicted on U.S. solar panel producers D. U.S. economic welfare would increase because the social gains from increased U.S. production of solar panels would exceed the social costs associated with increased U.S. consumption of solar panelsarrow_forward
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