Difference between an export tax and an export subsidy

Assignment Help Macroeconomics

Reference no: EM13184047

1.If you were an import-competing producer in a growing market, which trade instrument would you prefer-a tariff, an import quota, or a subsidy? Why?

2.How does an import quota differ from a tariff? Can the government ever capture the quota rent? How?

3.What is the difference between an export tax and an export subsidy? Which instrument are domestic consumers likely to prefer? Why?

4.Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in aggregate unemployment in that country?

5.You have learned that a subsidy is preferable to a tariff if the objective is to generate a given amount of employment in an individual industry. Explain this point in language understandable to someone untrained in economics.

Reference no: EM13184047

Questions Cloud

American imports of wine are a small part of total world : Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free trade. Now suppose that a tariff is place on the importation of wine into the United States to protect..

Leadership and organizing : In this week's 'Leadership and organizing: sensemaking in action' article by Pye, the chief executive (CE) in the case took an approach to change that resulted in his being terminated. Was he too focussed on his preeminent 'position' as a formal lead..

The spending multiplier is equal to what : The spending multiplier is equal to what What is the necessary change in government spending alone that is needed to get the economy to full employment The tax multiplier is equal to what What is the necessary change in taxes alone that is needed to..

Explain concentrations in molarity : Determine the concentrations of BaBr2, Ba2 , and Br- in a solution prepared by dissolving 1.62 × 10-4 g BaBr2 in 1.50 L of water.

Difference between an export tax and an export subsidy : .What is the difference between an export tax and an export subsidy Which instrument are domestic consumers likely to prefer Why Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in a..

State what is the mass in grams of atoms of the element : what is the mass in grams of 3.17x10^20 atoms of the element?

Did you buy product or service because of this commercial : Did the advertisers accomplish their purpose? Did you buy the product or service because of this commercial? Are there products or services that you refuse to use because of advertisements you have seen?

Explain what is the mechanism for the oxidation of an aldose : What is the mechanism for the oxidation of an aldose to an aldonic acid

How entrepreneurs allocate resources : Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college 2. Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or econom..

User Account

All Pages