« previous next »

Author Question: Assume the United States is considering either a tariff or a quota to protect motorcycles. For ... (Read 75 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?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Median Age at First Marriage in the United States Median Age at First Marriage in the United States
Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates. Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates.
Leading Sites of Cancer Deaths in the United States, 2013 Leading Sites of Cancer Deaths in the United States, 2013
An example of the sometimes drastic differences in placarding regulations in the United States ... An example of the sometimes drastic differences in placarding regulations in the United States ...
The Location and Number of Farms in the United States, 2012 The Location and Number of Farms in the United States, 2012
Income Distribution in the United States, 2009 Income Distribution in the United States, 2009
Video: Digestive chemicals - types & enzymes

For a complete list of videos, visit our video library