« previous next »

Author Question: It is argued that a tariff may help promote employment in a single industry, but is not likely to ... (Read 27 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
It is argued that a tariff may help promote employment in a single industry, but is not likely to help employment in general. Discuss.
 
  What will be an ideal response?

Question 2

Refer to the figure above. With free trade, the total quantity of imports would equal
 
  A) 10,000 units.
  B) 20,000 units.
  C) 22,000 units.
  D) 30,000 units.


spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 30, 2018
Answer to Question 1

A general tariff on all imports is equivalent to a depreciation in the value of the country's currency. It would raise the prices of all imports, and have a considerable income effect. This income effect will have a negative effect on total consumption of the import-competing sector (as well as the exportables and non-tradables). In addition, under conditions of a flexible exchange rate regime (assuming the Marshal-Lerner Conditions hold) it will lower the supply of the country's currency in the foreign exchange market, and hence cause an appreciation of the currency. This will harm the country's exports, and negatively affect this sector's employment.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

krzymel

  • Hero Member
  • *****
  • Posts: 548
Reply #2 on: Jun 30, 2018
Thank you :)


spencer.martell

  • Sr. Member
  • ****
  • Posts: 342
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Interventions to promote safety for children Interventions to promote safety for children
Where Professional Psychologists Work Primary employment settings for PhD recipients in psychology. Where Professional Psychologists Work Primary employment settings for PhD recipients in psychology.
Provisions of The Underwood-Simmons Tariff Provisions of The Underwood-Simmons Tariff
Reptilian Brain or Instinctive Brain Promote Understanding of Human Behavior Reptilian Brain or Instinctive Brain Promote Understanding of Human Behavior
Nanomaterials Applications and Industry Used Nanomaterials Applications and Industry Used
Preterm birth rates, by single and multiple births, Canada Preterm birth rates, by single and multiple births, Canada
Video: Neural regulation of blood pressure - baroreceptor and chemoreceptor reflexes

For a complete list of videos, visit our video library