Answer:
Tariffs and import quotas generally reduce economic welfare.
Explanation:
The vast majority of economists (over 90% according to the University of Chicago) agree that tariffs and import quotas generally reduce economic welfare. This is perhaps the normative statement in which economists agree the most.
The reason why is because tariffs and import quotas only benefit a small fraction of domestic producers, to the dismay of a larger number of consumers who end up having to pay higher prices for consumer goods.
Answer:
$11,200, $2,400
Explanation:
Assume the small-country model is applicable. If the world price of the product is $6 and a tariff of $1 per unit is applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be $11,200, and the total revenue (after tariff) going to foreign producers would be $2,400
Answer:
The correct answer is (b) Dis-economies of scope
Explanation:
Solution
Dis-economics of scope : This refers to a situation when the average cost of production is greater from the shared production of services than the average costs from the preceding independent production of the services.
The vendor here in this case is experiencing Dis-economics of scope.
Answer:
a. the products are identical or very similar in nature.
Explanation:
Products that are identical or very similar in nature are mass-produced in a continuous fashion. The basic reason and logic behind it is to achieve the economies of scale. With the help of economies of scale per unit cost of the product is dived over all the produced units, consequently, per unit cost of the product is decreased quite drastically. For this particular purpose products with identical or similar nature are chosen so that each batch can be produced quite effectively.
Answer:
P514.70/$
Explanation:
At the beginning the exchange rate was P150/$
The inflation is 250% in Country A and 2% in country B.
The net inflation for the two countries exchange rate will be 125%.
The new exchange rate for the Color-Me-Green will be ;
P150/$ * 125% * fisher effect inflation rate = P514.70
