Question

The federal government enacts new tariffs and quotas on all imports.

The federal government enacts new tariffs and quotas on all imports.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

This action will have cascading effect on the US economy in the following ways:-

  1. Lead to high pricing of the products as imports are reduced.
  2. Will lead to fewer choices for goods in the market.
  3. Will lead to low competition in the market, resulting in low quality products.
  4. Will lead to inflation, if the demand supply equibrium is disturbed due to supply side constraints.
  5. Will increase employement, as more local production will try to occupy the available space.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
4. Would the U.S. government gain any advantage from using tariffs or quotas to restrict imports?...
4. Would the U.S. government gain any advantage from using tariffs or quotas to restrict imports? Tucker, Irvin B.. Macroeconomics for Today (Page 511). South-Western College Pub. Kindle Edition.
Tariffs and Quotas      Small Country      A. Effects of tariffs on         - Domestic Price...
Tariffs and Quotas      Small Country      A. Effects of tariffs on         - Domestic Price         - Domestic production         - Imports         - Consumer and producer surplus         - Production and consumption distortion         - Government revenue      B. Quotas         - Effect on export supply and domestic price         - Effects on consumer and producer surplus,           production and consumption distortion         - The quota rent         - Methods of allocating the quota rent      C. Large...
What are import quotas? Why do some governments use them instead of just using tariffs to...
What are import quotas? Why do some governments use them instead of just using tariffs to restrict imports by the same amounts? Is it because quotas bring a bigger national gain than tariffs?
8. (8 pts.) Tariffs and quotas are both trade restrictions. Explain one way that tariffs and...
8. (8 pts.) Tariffs and quotas are both trade restrictions. Explain one way that tariffs and quotas are different. Also, explain one way the tariffs and quotas are similar (other than both being trade restrictions).
All of the following are arguments in favor of tariffs and quotas except a. the infant...
All of the following are arguments in favor of tariffs and quotas except a. the infant industry argument. b. the low transition cost argument. c. the national security argument. d. the environmental standards argument. e. the dumping argument. the environmental standards argument. the dumping argument.
QUESTION 9 Import bans, import quotas, voluntary export restraints, and tariffs on goods all A. increase...
QUESTION 9 Import bans, import quotas, voluntary export restraints, and tariffs on goods all A. increase equilibrium quantities, but decrease prices. B. increase equilibrium quantity and prices. C. decrease equilibrium quantity and prices. D. decrease equilibrium quantities, but increase prices. 4 points    QUESTION 10 Which of the following situations will arise in the domestic market following the imposition of a tariff? A. imports increase, domestic production increases, prices increase B. imports decrease, domestic production increases, prices increase C. imports...
Suppose that government enacts a major tax increase. At the same time, the Federal Reserve uses...
Suppose that government enacts a major tax increase. At the same time, the Federal Reserve uses monetary policy in such a way that the combined effect of the tax increase and the monetary policy is that GDP DOES NOT CHANGE at all. Based on this information, explain clearly what the overall (short-run) effect of the two policies must have been on (A) Investment (B) The price level. (Assume prices are flexible or can change.) (C) The government budget balance (please...
What are the similarities and differences in the economic effects of tariffs and quotas? Which one...
What are the similarities and differences in the economic effects of tariffs and quotas? Which one is more effective in protecting an industry and why?
Imposing trade restrictions such as tariffs or quotas ________. decreases the cost of products sold in...
Imposing trade restrictions such as tariffs or quotas ________. decreases the cost of products sold in the home market increases the availability of products sold in the home market reduces the availability of products sold in the home market increases the availability of raw materials
WTO had a tariffication process through which countries substituted their import quotas with tariffs. This is...
WTO had a tariffication process through which countries substituted their import quotas with tariffs. This is because economists usually think that quota is more inefficient for the global economy than an import tariff. Why is import quota more inefficient？ Using two real-world examples, explain some unintended(and undesirabel) consequence of quotas.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT