Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose a domestically produced motor bicycle sells at a world price of $5,000 under unrestricted trade. The domestic producer uses $3,000 worth of imported inputs, (VA*). The $2,000 difference between the world price of the final motor bicycle and the cost of the imported components represents domestic value added (VA). Domestic value-added includes the payments made to domestic labor and capital inputs. Under restricted trade, domestic value-added cannot exceed $2,000, or the price of the domestically produced motor bicycle will exceed that of imported ones and the domestic ones will not sell. Suppose a 10 percent ad valorem (on the value) tariff is imposed on the imported motor bicycle.
Please explain each answer! I'm stumped and would love to actually understand it.
a. What is the domestic price of the imported motor bicycle?
b. What is the possible price of the domestically produced motor bicycle?
c. What is the domestic value-added of the imported motor bicycle (VA*)?
d. What is the effective rate of protection (ERP)?
e. Is this an effective rate of protection? Why or why not?
The more abundant are idle resources when AD (aggregate demand) rises ....
Illustrate what is the relation between marginal benefit and marginal cost at this level of the control variable.
Briefly define the following terms. Tariff escalation, Optimal tariff rate, Ad valorem tariff equivalent, Voluntary export restraint (VER), Terms of trade effect (of subsidy), Harmonized System (HS) of commodity Classification, Common external tariff..
__________can lead to a situation where, even if sellers are faced with a situation of _______________, they will decide not to cut prices for awhile because they know that buyers in this situation will not react by purchasing a _______________ .
How much will a $34,000-per-year college cost 15 years from now if inflation is at an annual rate of 6.5%?
q.read through the budget speech presented by the minister of finance on 22 february 2012. explain in detail whether
q1. suppose the supply of apartments in minneapolis is perfectly elastic. the effect of a 100 per month tax on all
Why would a tax credit for mortgage intrest be worth more to lower income families than a deduction? Would you favor changing the benefit from a tac deduction to a tax credit? What other changes might you want to make at the same time? WHY?
In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the ..
You are the manager in a market composed of 4 firms, each of which has a 25.00 percent market share. In addition, each firm has a strong financial position and is located within a 100-mile radius of its competitors. Calculate the premerger Herfindahl..
Assume a $6 excise tax is imposed on the good. Conclude the new equilibrium cost also quantity.
Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd