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1. Discuss the small-country case of tariffs, using partial equilibrium analysis.
2. Suppose the free trade market price of a car is$20,000. It contains $10,000 worth of steel. The importing country imposes25% tariff on car imports.
a. Calculate the effective rate of protection if there is no duty on steel imports.
b. Calculate the effective rate of protection if the importing country imposes a20% tariff on steel imports.
c. Suppose it also takes$4000 worth of copper (besides$10,000 worth of steel) to produce a car. Calculate the effective rate of protection if there is no import tariff on the imports of either steel or copper.
d. Suppose there is import duty of20% and 15% on imports of steel and copper, respectively. Calculate the effective tariff rate.
The equilibrium price for physiotherapy visits is $30 and the quantity utilized is 150 visits as a result of the demand and supply conditions in this diagram.
The tax revenue and the dead weight loss.
Richard is deciding whether to buy a state lottery ticket. Each ticket costs $1, and the probability of the following winning payoffs is given as follows: Probability Return .5 $0.00 2.5 $1.00 .2 $2.00 -05 $7.50
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All our projects are discounted at the same interest rate,” says the treasurer of a large company. Would you dispute the advisability of such a procedure?
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