Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 7.3, Problem 4RQ
To determine
What are the effects of an import quota on domestic production, consumption, and price.
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Students have asked these similar questions
What is the product quota of Singapore?
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.
Explain the effects of an import quota on domestic production, consumption, and price. Further explain who gains and who loses from an import quota and why the losses exceed the gains.
Chapter 7 Solutions
Macroeconomics
Ch. 7.1 - Prob. 1RQCh. 7.1 - Prob. 2RQCh. 7.2 - Prob. 1RQCh. 7.2 - Prob. 2RQCh. 7.2 - Prob. 3RQCh. 7.3 - Prob. 1RQCh. 7.3 - Prob. 2RQCh. 7.3 - Prob. 3RQCh. 7.3 - Prob. 4RQCh. 7.3 - Prob. 5RQ
Ch. 7.4 - Prob. 1RQCh. 7.4 - Prob. 2RQCh. 7.4 - Prob. 3RQCh. 7.4 - Prob. 4RQCh. 7.4 - Prob. 5RQCh. 7 - Prob. 1SPACh. 7 - Prob. 2SPACh. 7 - Prob. 3SPACh. 7 - Prob. 4SPACh. 7 - Prob. 5SPACh. 7 - Prob. 6SPACh. 7 - Prob. 7SPACh. 7 - Prob. 8SPACh. 7 - Prob. 9SPACh. 7 - Prob. 10SPACh. 7 - Prob. 11SPACh. 7 - Prob. 12APACh. 7 - Prob. 13APACh. 7 - Prob. 14APACh. 7 - Prob. 15APACh. 7 - Prob. 16APACh. 7 - Prob. 17APACh. 7 - Prob. 18APACh. 7 - Prob. 19APACh. 7 - Prob. 20APACh. 7 - Prob. 21APACh. 7 - Prob. 22APACh. 7 - Prob. 23APACh. 7 - Prob. 24APACh. 7 - Prob. 25APACh. 7 - Prob. 26APACh. 7 - Prob. 27APACh. 7 - Prob. 28APA
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- Advantages of implementation of import ban on certain products.arrow_forwardEconomics Questionarrow_forwardEvaluate the effects of an import tariff by the government of a small country. Explain in detail the effects of an import tariff on the economic welfare of the small country. Describe the potential advantages to the economy if the government offers an export subsidy.arrow_forward
- The figure below shows the domestic demand (Dd) and domestic supply (Sa) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ: Sa Sa+ Q. $800 $750 $715 World price New export price with quota Da 0.4 0.5 0.6 1.5 1.8 2.0 Quantity (Millions of Mopeds per year) If the government auctions the quota licenses, the importing nation will lose $29.75 million. O gain $21.5 million. O gain $31.5 million. lose $10 million.arrow_forwardA US quota limiting the import of cars from Japan to 1000 a year will have the following effect Select the correct answer below: reduce the price of Japanese cars on the domestic market cause the loss of jobs in the car manufacturing industry in the US increase the sale of US cars in the domestic market O reduce the profits of US car manufacturersarrow_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_forward
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