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a) Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country's government on
(i) the Nigerian consumers of Y,
(ii) the Nigerian producers of Y, and
(iii) the Nigerian government's tax revenues.
Assume that Nigeria is a "small" country. Evaluate the "net welfare effect" of the tax. Why might a country want to impose an export tax? Explain.
(b) Suppose now that Nigeria is imposing export tax in part (a) of this question is a "large" country rather than a "small" country. Is it an advantage or a disadvantage for a country to be "large" rather than "small" when it imposes an export tax? Explain.
Draw a supply- demand diagram of the federal funds market and show the effects of a Federal Reserve Purchase of $85 billion in US Treasury Notes during a Quantitative Easing Campaign after the Fed has already lowered its Fed funds target to 0 - .25%.
Describe the effects of the sugar quota. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. Suppose imports were expanded to 10 billion pounds. What would be the new U.S. domestic price? How mu..
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Consider our core values of Excellence, Community, Integrity and Responsible Stewardship: Should the U.S. continue farm subsidies? Make sure to incorporate the concept of comparative advantage and gains from trade (vs competitive advantage)
Suppose the value of the US dollar is pegged to gold at a rate of $50 per ounce. Next, suppose that the value of the British pound is pegged to the US dollar at a rate of 1.5 dollars per pound, and the value of the Canadian dollar is pegged to the US..
Explain the concept of comparative advantage and the principle theories of why trade occurs and analyze and discuss the sources of comparative advantage in national economies.
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a. How much is Tony's wealth initially? b. How much is Tony's gross income per year? c. Is Tony's wealth increasing or decreasing? Why?
If the price-taking firm was earning zero economic profits before the dynamic efficiency, will the level of profits change after? If so, show the extent of the change.
Suppose the candle manufacturing industry is organized as a perfectly competitive market i.e. it consists of many firms with identical cost structures. A single firm's long-run average total cost function is “U” shaped and minimized at an output of q..
King Lear was worried about how his children would treat him in his old age. Much to his regret, he discovered that children do not always deliver what they promise. In addition to love and respect, children are also motivated by the possibility of a..
A project requires an initial investment of $50,000. The annual expenses are estimated to be $10,000 for the first year and decrease 5% per year over the 5 year life of the project. The annual revenues are estimated to be $15,000 for the first year a..
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