Draw a graph showing the effects of imposing a tariff in the small country case. Describe the results, using the concepts of producer surplus, consumer surplus and deadweight loss. Specifically address the effects on consumers, producers, government revenue and overall national well-being, connecting those effects to areas of your graph
What will be an ideal response?
Students should create a graph similar to Figure 6.3 and to describe results similar to Table 6.1.
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A change in input prices will change the location of the firm’s budget line.
Answer the following statement true (T) or false (F)
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A) supply increases and demand decreases. B) supply and demand for a product simultaneously decrease. C) supply and demand for a product simultaneously increase. D) supply decreases and demand increases.
Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System (GPS), is an example of a government policy to promote economic growth by:
A. increasing physical capital. B. increasing human capital. C. increasing the availability of natural resources. D. improving technology.
Which location would have the highest net primary productivity?
A. CHILE B. CHINA C. COLOMBIA D. COMOROS