Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 21, Problem 2WNG
(a)
To determine
The level of imports at ‘Pw’.
(b)
To determine
The level of import at ‘Pw+T’.
(c)
To determine
The loss in
(d)
To determine
The gain in
(e)
To determine
The revenue received as a result of tariff.
(f)
To determine
The net loss to society as a result of tariff.
(g)
To determine
The net benefit to society moving from tariff to non-tariff.
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Students have asked these similar questions
An 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 good
In the accompanying figure,
PW is the world price and PW + T is the world price plus a tariff. Identify the following:a. The level of imports at PWb. The level of imports at PW + Tc. The loss in consumers’ surplus as a result of a tariff d. The gain in producers’ surplus as a result of a tariffe. The tariff revenue received by the government as a result of a tariff f. The net loss to society as a result of a tariffg. The net benefit to society of moving from a tariff to no tariff
If Indonesia (which is a small country) imposes an import tariff on textile imports, we can conclude that:(a) The world price of textile rises, and Indonesia imports less.(b) The world price of textile stays constant, and Indonesia imports less.(c) The world price of textile falls, and Indonesia imports less.(d) The world price of textile stays constant, and Indonesia imports the same as before.
Explain why.
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