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1. 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 the following 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 gain to domestic producers, revenue for the government, and a deadweight loss. Use your diagram to identify these three pieces.
2. Consider the arguments for restricting trade.
For the industry you have chosen, discuss how price moves from today to the future.
Why is the "power of the purse" an important component of political power? Which of the following was NOT considered a weakness of the Articles of Confederation? Which of the following concepts is most closely associated with John Locke? The U.S. Con..
Measuring and understanding worker productivity for a business has great practical implication. (worker productivity among giant U.S. corporations): What are the best methods available to measure worker productivity? Please discuss their advantages a..
Suppose that the monetary base increases by $400 billion. If the money multiplier equals 2.75, the money supplies:
Suppose in the United States consumption is described by the formula: C= $50 billion+0.9 Yd, where Yd is disposable income. If taxes are $100 billion and household income is $1,000 billion, what is the amount of household savings in the economy?
Mario works part-time at a Pizza Hit and earns an annual wage plus tips of $15,000. He sold 4,000 pizzas during the year at $15.00 each. He was unemployed part of the year, so he received unemployment compensation of $3,000. During the past year, Mar..
Jenny is starting a bakery and needs some help with pricing the muffins. Since she knows you have studied pricing, please help her to determine the following. The muffins cost $0.35 to produce. She would like to sell them for $1.20. What is the mark-..
A consulting company estimated market demand and supply in a perfectly competitive industry and obtained the following results.
Explain how the great depression affected the us economy, what caused it, why it was so severe, why it lasted for so long, and why the economy finally recovered
What do you think is the reason for the cost overrun for the project? Which cost estimating methods or other corrective actions could have been used to avoid the overruns in the project?
Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange one commute by bus for one commute by T. The price of a bus ticket is $1.50 and the price of a T ticket is $2.00. Jim has $6.00 to spend on commuting. Find..
Using human capital theory elucidate what these dangers are. While there may be good reasons for heavily subsidizing university education, there are also some dangers in it.
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