International Economics
16th Edition
ISBN: 9781305887633
Author: Robert Carbaugh
Publisher: Cengage Learning
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Question
Chapter 5, Problem 19SQ
To determine
To Check: The tariff rate quota is a compromise between the producer’s and consumer’s interests and the revenue effect.
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Students have asked these similar questions
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.
Evaluate 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.
One 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 revenue
Chapter 5 Solutions
International Economics
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Similar questions
- Examine the welfare and trade impacts of a large-country import quota.arrow_forwardWhat will a tariff and an import quota do to the quantity of imports and the domestic price? reduce the quantity of imports and lower domestic price increase the quantity of imports and raise domestic price increase the quantity of imports and lower domestic price reduce the quantity of imports and raise domestic pricearrow_forwardAre there any differences between a specific tariff and a quota as a policy instrument on a national economy in terms of affecting mechanisms and welfare effects? Please explain.arrow_forward
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