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Suppose that Congress imposes a tariff on imported autos to protect the U.S. auto industry from foreign competition. Assuming that the United States is a price taker in the world auto market, show on a diagram: the change in the quantity of imports, the loss to U.S. consumers,the gain to U.S. manufacturers, government revenue, and the deadweight loss associated with the tariff. The loss to consumers can be decomposed into three pieces: a transfer to domestic producers, a transfer to the government, and a deadweight loss. Use your diagram to identify these three pieces.
Consider a small country that exports steel. Assume that a "pro-trade" government deicdes to subsidize the export of steel by paying
The company wants to replace office equipment like machines and computer at assorted times over the five year planning period.
Elucidate why your answer to part (a) is an example of marginal analysis also optimizing behavior in general.
Calculate the initial level of output per person, the growth rate of output per person also the level of output per person after 100 years.
Compare the sum of consumer and producer surplus for the monopoly with the results for perfect competition.
Prove utilizing a graph, that a diagonal line through the original would intersect each indifference curve once.
Explain how does the government decide to use one form of remedy rather than the other.
Do vending machines conserve on any possessions other than labor. Does your answer offer any additional insight into the widespread utilize of vending machines in Japan.
Determine the quantity demanded, the quantity supplied, and the magnitude
A basic theory of underlying macroeconomic behavior and therefore useful for making policy predictions. Briefly explain.
After allowing for sleep and personal care, she has 70 free hours each week and must split these hours between work to earn money.
Suppose nominal GDP in 1999 was $100 billion also in 2001 it was $260 billion. Illustrate what is the own-price elasticity of demand.
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