« previous next »

Author Question: Assume the United States is considering either a tariff or a quota to protect motorcycles. For ... (Read 76 times)

Anajune7

  • Hero Member
  • *****
  • Posts: 574
on: Jul 1, 2018
Assume the United States is considering either a tariff or a quota to protect motorcycles.
 
  For each of the following groups, list whether they should prefer either the tariff or the quota, or be indifferent between the two: importer of motorcycles, taxpayers, foreign producer of motorcycles.

Question 2

Employer provided health care limits the moral hazard problem to a large degree.
 
  a. True b. False


komodo7

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

The importer of motorcycles will prefer the quota because it generates extra profit for him since the importer can buy at the world price and sell it at the artificially high domestic price. The taxpayers prefer the tariff, because at least it brings in revenue to the U.S. Treasury which could be used to reduce taxes elsewhere. Foreign producers of motorcycles will be indifferent between the two because the effect on them will be the same under both a tariff and quota.

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

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?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Lightning Casualties in the United States by Location or Activity Lightning Casualties in the United States by Location or Activity
Globalization Within the United States Globalization Within the United States
Place a towel or sheet over knee area. Use a thin barrier to protect skin from cold source. Place a towel or sheet over knee area. Use a thin barrier to protect skin from cold source.
The Location and Number of Farms in the United States, 2012 The Location and Number of Farms in the United States, 2012
What's the Difference Between England, Great Britain, and United Kingdom? What's the Difference Between England, Great Britain, and United Kingdom?
Fraction of obese individuals by state in 1998 and 2008. In 1998, 42 states had obesity rates below Fraction of obese individuals by state in 1998 and 2008. In 1998, 42 states had obesity rates below
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library