Some of the largest import tariffs-tax on imported goods

Assignment Help Business Economics
Reference no: EM131239853

Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest US tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37%, and that on $300 Italian leather imports is 12%. Laura buys either inexpensive, canvas sneakers ($3 before tariff) or more expensive gym shoes ($12 before the tariff) for her many children. Use an indifference curve-budget line analysis to show how imposing these unequal tariffs affects the bundle of shoes that she buys compared to what she would have bought in the absence of tariffs. Can you confidently predict whether she’ll buy relatively more expensive gym shoes after the tariff. Why or why not?

Reference no: EM131239853

Questions Cloud

Develop a simple backbone and determine the total cost : You have been hired by a small company to install a backbone to connect four 100base-T Ethernet LANs (each using one 24-port hub) and to provide a connection to the Internet. - Develop a simple backbone and determine the total cost.
Can interfere with positive guidance and strategies : An area of child guidance of greatest interest to you from your work in this course, why it interests you, and a plan for increasing specific knowledge and skills toward gaining greater competency in this area.
What is the equilibrium price and quantity of electricity : ECO 314: Energy and the Environment - What is the equilibrium price and quantity of electricity and what is the change in consumer and producer surplus, relative to the previous market equilibrium, associated with the policy?
How many ways are there to feed 12 spinach stems : How many ways are there to feed 12 spinach stems (of different lengths) to four ducks such that the grey duck gets five spinach stems, the white duck gets five spinach stems, and the pale-grey and black ducks get one spinach stem each?
Some of the largest import tariffs-tax on imported goods : Some of the largest import tariffs, the tax on imported goods, are on shoes. Strangely, the cheaper the shoes, the higher the tariff. The highest US tariff, 67%, is on a pair of $3 canvas sneakers, while the tariff on $12 sneakers is 37%, and that on..
Components used to process data : Which of the following would be a description of a system unit? The module that interprets and carries out computer instructions. Components used to process data into information that are enclosed in a case or chassis
What networks does the backbone connect : Survey the BNs used in your organization. Do they use Ethernet or some other technology? Why?- What networks does the backbone connect?
What is the rms average cost at this output : The White Company is a member of the lamp industry, which is perfectly competitive. The price of a lamp is $50. The rm's total cost and marginal cost functions are: What is the rm's economic pro t at this out- put? What is the rm's average cost at th..
What are the advantages and disadvantages of vlans : What are the advantages and disadvantages of VLANs? - How can you improve the performance of a BN? - Why are broadcast messages important?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Wholesale skim milk market is perfectly competitive

Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?

  Workers real wage reflects her productivity

According to the neoclassical theory of distribution, a worker’s real wage reflects her productivity. Let’s use this insight to examine the incomes of two groups of workers: farmers and barbers. Over the past century, the productivity of farmers Af h..

  Effect does price differential likely have on miles driven

In the United States, say gasoline costs consumers about $2.50 per gallon. In Italy, say it costs consumers about $6 per gallon. What effect does this price differential likely have on miles driven in the United States compared to Italy?

  In a market with an upward sloping supply curve

In a market with an upward sloping supply curve and a downward sloping demand curve, a price floor A. Creates deadweight loss B. transfers some consumer surplus to producers C. Transfers some consumer surplus to consumers Choose all that apply ?

  Free trade to affect the general unemployment level

Why might we not expect free trade to affect the general unemployment level in the economy, but it will affect some more than others?

  Answer both question 1 and 2question 1consider an investor

answer both question 1 and 2question 1consider an investor who has the von neumann-morgenstern utility

  Prepare an inference tree for the backward-chaining case

You are asked “Should we buy a house or not?” and given the following set of rules to answer it: IF inflation is low, THEN interest rates are low, ELSE interest rates are high. Prepare an inference tree for the backward-chaining case.

  Created as an unfunded or pay-as-you-go plan

Social security was created as an “unfunded” or “pay-as-you-go” plan. Explain how an “unfunded plan works. Suppose we suddenly ended social security today. How would the return earned by the last generation of retirees compare to that earned by the f..

  Concerns corporate-level strategy

Over the last seven chapters you have hopefully been reading each chapter’s “running case”- Wal-Mart. Given that this chapter concerns corporate-level strategy, it is appropriate that we tie together the elements of the running case to consider Wal-M..

  Firms in an industry with monopolistic competition

Perfect Competition and Monopolistic Competition-List the features of an industry that has perfect competition, and compare these with the features of an industry with monopolistic competition. How do firms in an industry with perfect competition act..

  Changes to the money supply and interest rates

When the Federal Reserve decreases the discount rate, monetarists and Keynesians would agree on which of the following changes to the money supply and interest rates.

  Capital-labor until marginal rate of technical substitution

According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd