Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Chapter 32, Problem 4QFR
To determine
To explain:
The reason for foreign producers agree to quota rather than imposed tariff.
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Why would an importing country use a tariff rather than a quota?
Analyze the Economic Effects of Tariffs and Quotas. Give examples.
In 2019, Japan had a tariff on canola oil imports from Canada of 13.2 yen per kg. This same year, Japan imported approximately 35
million kg of canola oil from Canada.
How much tariff revenue did the Japanese government generate in 2019?
(Do not include the extra zeros for millions in your answer.)
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Principles of Economics (Second Edition)
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- Why do low income countries have higher tariffs than high income countries?arrow_forwardUnder what conditions could an import quota and a tariff have exactly the same effect on price and bring the same gains and losses (given a tariff level that restricts imports just as much as the quota would)?arrow_forwardWhen a large country imposes a tariff for a certain good it imports,it often affects the foreign price of the good as well. Is this statement true? Justify the answerarrow_forward
- Explain why a quota may result in lower total surplus in the home country than a tariff, even if they have the same effect on imports and the domestic price.arrow_forwardOne 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 revenuearrow_forwardThe 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?arrow_forward
- Direct investment should only be used when there is a low chance of success and the market has weak potential the market is stable and flat there is a low chance of success and the market has strong potential there is a high chance of success and the market has strong potential there is a high chance of success and the market has weak potentialarrow_forwardI don’t understand how to add a tariffarrow_forwardForeign's demand curve for wheat is p*=8-1/20q*d. Its supply curve is p*=2+1/20q*s Determine the effect of the tariff onarrow_forward
- What are the benefits and costs of import tariffs?arrow_forwardCarefully explain how the imposition of a tariff is different for a large country (that can affect the world price) than a small country. Show your work graphically and explain in words.arrow_forwardYou have been asked to quantify the effects of removing a country's tariff on sugar. ... Part Of The Work Is Already Done: Somebody Has Estimated How Many Pounds Of Sugar Would Be Produced, Consumed, And Imported By The Country If There Were No Sugar Duty.arrow_forward
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