A small country’s demand curve is given by Q=36-2P and its supply curve is given by Q=4P-12.  Assume the world is currently in free trade and that the price under free trade is $4.  What is the prohibitive specific import tariff for this economy (i.e. the tariff that would reduce net exports to zero)?Group of answer choices8456

A small country’s demand curve is given by Q=36-2P and its supply curve is given by Q=4P-12.  Assume the world is currently in free trade and that the price under free trade is $4.  What will be the government revenue if this country implements a $2 specific import tariff?Group of answer choices39782426

A small country’s demand curve is given by Q=36-2P and its supply curve is given by Q=4P-12. Assume the world is currently in free trade and that the price under free trade is $4. What is the size of the import quota that, when introduced, would be equivalent (i.e. have the same impact on price and quantity) to the introduction of a $2 specific import tariff? Group of answer choices 35 26 12 13

Direct restrictions on the quantity of some good that may be imported into a country are known as:Question 5Select one:a.None of the aboveb.Ad valorem tariffsc.Specific tariffsd.Tariff rate quotas

Import tariffs:Question 1Select one:a.Are generally pro-consumer and anti-producer.b.Reduce the overall efficiency of the world economy.c.Create efficient utilization of resources.d.Reduce the price of foreign goods.

Let us consider two big countries, H and F, that are trading with each other a good X and a good Y.i) Draw the graph for the excess demand curves for good Y for these two countries under free trade,under the hypothesis that ; that is, the equilibrium relative price p X/p Y in autarchy is higher incountry H with respect to country F. Determine also graphically the equilibrium terms of trade, . What isthe condition that equilibrium terms of trade satisfy?Country F decides to levy an ad valorem tariff equal to t on imports. After the introduction of the tariff,equilibrium terms of trade change, and they assume a new value that we indicate with .ii) Write the analytic expression for the domestic relative price in country F, , after the importtariff is levied, as a function of the new international terms of trade .iii) Show graphically through the excess demand curves for good Y in country H and country F how todetermine the new terms of trade, , after the tariff is levied.Redo points ii) and iii) in the case of an import tariff levied by country H on good X.■FAHA p>ppˆpˆtpˆFtptpˆtpˆ