« previous next »

Author Question: Use a graph to demonstrate why quotas are likely to cause increased deadweight losses over time. ... (Read 78 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
on: Jun 30, 2018
Use a graph to demonstrate why quotas are likely to cause increased deadweight losses over time.
 
  What will be an ideal response?

Question 2

Because of China's growth, natural resources
 
  A) are in greater demand, but that demand is mostly going to the previously industrialized nations so it is having little effect on economic development in developing countries.
  B) are in greater demand and the natural resources are increasingly coming from developing countries.
  C) prices are falling since China has tremendous negotiating power.
  D) are not in high demand since labor and capital are the emphasized inputs in Chinese manufacturing.
International Economics ¦ Gerber ¦ 6th Edition
Buy Test-Bank


dyrone

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 30, 2018
Answer to Question 1

Over time, demand for most goods rises, as populations increase (as well as for other reasons). The graph should show an increase in demand, given a constant quota amount. Since the quota does not change, the effect of the quota will be to raise price even more than previously. This increases the size of the deadweight loss due to underconsumption of the good and increase the deadweight loss due to domestic overproduction.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
Reply #2 on: Jun 30, 2018
Correct answers!


dyrone

  • Sr. Member
  • ****
  • Posts: 322
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Egg cells are about the size of a grain of sand. They are formed inside of a female's ovaries before she is even born.

DNA replication is the basis for the perpetuation of life through time DNA replication is the basis for the perpetuation of life through time
Diabetes mellitus. The metabolic disease diabetes mellitus, with symptoms of polydipsia, polyuria, a Diabetes mellitus. The metabolic disease diabetes mellitus, with symptoms of polydipsia, polyuria, a
Principles of time management Principles of time management
Use two hands to squeeze both sides of the arm at the same time. Apply from shoulder to wrist. ... Use two hands to squeeze both sides of the arm at the same time. Apply from shoulder to wrist. ...
Insecticide application over time Insecticide application over time
Time spent on, paid work and housework, by living arrangements of Canadian Time spent on, paid work and housework, by living arrangements of Canadian
Video: Protein catabolism (Krebs cycle) and Protein anabolism (protein synthesis)

For a complete list of videos, visit our video library