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Q. Suppose that the world price for steel is below the U.S. domestic price, but the government requires that all steel used in the United States be domestically produced.?a. Use a diagram like the one below to show the gains and losses from such a policy.?b. How could you estimate the net welfare loss (deadweight loss) from such a diagram??c. What response to such a policy would you expect from industries (like automobile producers) that use U.S. steel??d. What government revenues are generated by this policy?
How low must a quota be in effect to have an impact? Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota. Under what circumstances would the net welfare loss from an import quota exceed the net welfare loss from an equivalent tariff (one that results in the same price and import level as the quota)?
Suppose that the world price for steel is below the U.S. domestic price, but the government requires that all steel used in the United States be domestically produced.?a. Use a diagram like the one below to show the gains and losses from such a policy.?b. How could you estimate the net welfare loss (deadweight loss) from such a diagram??c. What response to such a policy would you expect from industries (like automobile producers) that use U.S. steel??d. What government revenues are generated by this policy?This is done on a supply and demand diagram.
Explain in detail rather than general in your recommendation.
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Assuming that wheat and barley both sell for $1, and income is $20, compute the price elasticity, cross price elasticity and income elasticity for wheat."
The wage in Mexico is $5. The wage in the U.S. is $20. Given current employment, the marginal product of the last worker in Mexico is 100, and the marginal product of the last worker in the U.S. is 500.
The distribution of annual net cash flows is approximately normal. Determine the probablity that the annual net cash flows will be negative. Discuss the probability that the annual net cash flows will be less than $20,000
The rate that does aggregate output, aggregate investment, aggregate consumption as well as per- capita income grow in this steady state.
A few years ago a construction manager earning $70,000 every year working for a regional home builder decided to open his own home building company.
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