Question

Explain why a quota is more detrimental to an economy than a tariff that results in...

Explain why a quota is more detrimental to an economy than a tariff that results in the same level of imports as the quota. What is the net outcome of either tariffs or quota for the world economy?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain intuitively why a quota that is competitively auctioned produces a similar outcome as a tariff...
Explain intuitively why a quota that is competitively auctioned produces a similar outcome as a tariff whose effect reduces imports to the same number of units as the quota. Distinguish between a VER and a quota with auctioned licenses
1. tariff that has the effect of limiting imports into a small country results in: A....
1. tariff that has the effect of limiting imports into a small country results in: A. a net loss to the exporting country but a net gain for the world. B. a net gain for the importing country and the world. C. no overall change in consumption or the world price of the product that is the subject of the tariff. D. a net loss to the importing country and the world. 2. Tariffs make imports ____________________ in domestic markets...
(4.0 pts) Describe why an import quota is far worse than an equivalent tariff in terms...
(4.0 pts) Describe why an import quota is far worse than an equivalent tariff in terms of welfare effect if the demand for the quota-constrained product increases over time. Do your analysis under two scenarios: (1) tariff, (2) quota. Do NOT draw a graph.
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.
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.
If a tariff in a small country reduces consumer surplus by $100, increases tariff revenue by...
If a tariff in a small country reduces consumer surplus by $100, increases tariff revenue by $50, and increases producer surplus by $20, then which of the following is incorrect? a. National welfare falls by $30. b. National welfare falls by $50. c. Deadweight loss is $30. d. The protection cost is $30. If a tariff of $10 per unit reduces the world price by $4, then a. The nation imposing the tariff must be a small nation. b. Domestic...
A- What is the production effect of a tariff? How would you describe it in words,...
A- What is the production effect of a tariff? How would you describe it in words, without reference to any diagram or numbers? How would you show it on a diagram, and how would you compute its value? B- How are trade creation and trade diversion defined, and what roles do they play in the world gains and losses from a trade bloc? C- A small price-taking nation imports a good that it could not possibly produce itself at any...
a. Which DNA mutation is more likely to have a detrimental effect on the protein it...
a. Which DNA mutation is more likely to have a detrimental effect on the protein it codes for: a 2 base pair deletion from the middle of the coding sequence of a gene, or a 12-base pair deletion from the same region of the gene? Explain why? b. Would the outcome be different if the deletions happened within the gene’s intron? Explain why?
2. The government of a small open economy in the long run wishes to promote trade...
2. The government of a small open economy in the long run wishes to promote trade policies that will result in currency appreciation (increasing the real exchange rate). A) Would protectionist policies (higher tariffs and more quotas) or freer trade policies (tariff reductions and quota eliminations) be more effective in generating currency appreciation? B) Illustrate graphically the impact of the trade policy on the exchange rate of the small open economy. C) What will happen to the trade balance of...
Carefully explain why monetary policy is likely to be more effective in an open economy than...
Carefully explain why monetary policy is likely to be more effective in an open economy than fiscal policy.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT