Q: In class, we discussed the effect of a tariff on a small open economy. However, some countries (e.g. the US) consume so much of some goods that their domestic demand significantly affects the world price. In this question, we will show that under such circumstances a positive tariff may be optimal for a large country.
(a) For simplicity, suppose that a good is fully imported so that there are no domestic producersof it. On a diagram, draw the domestic demand curve and the foreign supply curve of the goodto this country and show the free trade equilibrium. Mark off the equilibrium price (p) and2 the equilibrium quantity of the good. Shade the amount of consumer and producer surpluses generated by the equilibrium.
(b) Now draw another diagram which displays a tariff at rate t on the good. Show the new equilibrium price and quantity. How does the sum of consumer surplus, producer surplus, and tariff revenue compare with the sum of producer and consumer surplus in part(a)?
(c) Expand the diagram to include the epossibility of import subsidies (negative taco as in part (a), that the sum of consumer surplus, tariff revenues, and foreign producer surplus is maximized when the tariff is set equal to zero. Draw a diagram (with tariffs/subsidies on the
horizontal axis and the sum of surpluses on the vertical) that relates this total surplus to thetariff.(d) Show that, if the supply curve is upward sloping, foreign producer surplus consistently increases as tariffs are lowered to zero and continues to increase with import subsidies. Draw this curve on the same diagram as in part (c).
(e) If the domestic governments objective is to maximize the sum of consumer surplus and tariff revenue, show that this will lead it to set a strictly positive tariff.
#2 :A plot of land is owned by a Landlord but worked by a Tenant. If the Tenant provides efforts L he incurs a cost C(L), which increases at an increasing rate with L. The value of output from the plot is given by the production function y=g(L) + x with probability 0.5 and y= g(L)-x with probability 0.5, where g(L) increases at a decreasing rate with L, and x represents random variations in output due to climatic conditions. The variance of output is therefore x2. The Landlord is risk neutral,but the Tenant is risk averse with a coefficient of risk aversion given by r. The Landlord can monitor the output produced by the Tenant, but cannot observe or infer the amount of effort she exerts.
(a) Using the above information, write down the expected utility index of the two parties under(1) a wage contract, (2) a rental contract and (3) a sharecropping contract in which the tenant receives a share s of the output produced and the landlord get the rest [Hint: the cost of risk to the Tenant under a sharecropping contract in this example is r(sx)^2].
(b) In each of these contracts describe how the risk is allocated between to two parties. What about the incentives faced by the Tenant to exert effort ?
(c) With the aid of a diagram, explain how the theoretical constrained-efficient output share, s(and the associated effort level, L*), is determined in a share-cropping contract.
(d) Suppose a new crop variety is introduced which is less sensitive to climate variations, so that x; and hence the marginal cost of risk, declines. According to the above theory, how should this affect the optimal sharing rule ?
Question onea. The market demand curve for the imported commodity will shift to theright and the market supply is not changed thus the equilibrium quantitygoes up and the equilibrium price rises…
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chapter Seven 7 We Have Learned From The Path To Information Value That Seven 1
/in Uncategorized /by developerIn chapter seven (7), we have learned from “The Path to Information Value” that Seventy percent of managers and executives say data are “extremely important” for creating competitive advantage.
In addition, it is implied by the authors that, “The key, of course, is knowing which data matter, who within a company needs them, and finding ways to get that data into users’ hands.”
Looking at the Economist Intelligence Unit report, identify the three (3) phases that led to the yard’s rebirth.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chapter Three Of Making Connections Understanding Interpersonal Communication
/in Uncategorized /by developerIn Chapter Three of Making Connections: Understanding Interpersonal Communication, the author lays out many psychological concepts concerning the “self.” How do all these concepts relate to interpersonal communication? Also, give an example of how your “self-concept,” “self-image,” or “self-esteem” has affected your interpersonal communication.
In Chapter Three of Making Connections: Understanding Interpersonal Communication,the author lays out many psychological concepts concerning the “self.” How do all theseconcepts relate to…
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chapters Three And Four Of Women Counseling Women Fitzpatrick Discusses The I 1
/in Uncategorized /by developerIn chapters three and four of Women Counseling Women, Fitzpatrick discusses the importance of interpreting Scripture correctly. What do we risk if we misinterpret Scripture? Give and discuss three principles for interpreting the Bible correctly.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chapters Three And Four Of Women Counseling Women Fitzpatrick Discusses The I
/in Uncategorized /by developerIn chapters three and four of Women Counseling Women, Fitzpatrick discusses the importance of interpreting Scripture correctly. What do we risk if we misinterpret Scripture? Give and discuss three principles for interpreting the Bible correctly.
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Charles Mann S Article Discovering The New World Colombus Created He Claims T
/in Uncategorized /by developerIn Charles Mann’s article, “Discovering the New World Colombus created”, he claims that there was not a discovery of a new world, but rather the creation of one. His main emphasis was on food and how the spread of different plants and foods has had great cultural and ecological global impacts. He argues that globalization in this sense is positive because of increased trade but negative due to the harmful effects it has on the environment. What is your stance on globalization and its affect on the environment? Is there a way to have the best of both worlds in terms of free trade and conserving natural resources? How do you think we should consider these environmental consequences when making consumer decisions?
Plz do not copy articles on the website!!!
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chemistry 110 In Regards To Caffine Lab Why Does Caffine Leave Water And Move
/in Uncategorized /by developerIn Chemistry 110 in regards to caffine lab. Why does caffine leave water and move to dicholormethane? Is oil on clothes soluable in dry cleaning solvent? Does oil dissovle in water
what purpose does detergent serve?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Chickens Most Individuals Have Unfeathered Shanks When They Are Homozygous Fo
/in Uncategorized /by developer3. In chickens, most individuals have unfeathered shanks when they are homozygous for recessive genes at two loci. The presence of a single dominant allele at either loci causes feathers, If chickens heterozygous at both loci are crossed, what proportion of offspring are likely to be unfeathered? (2) What genetic phenemonen is illustrated by this trait? (1)
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Circumstances Where The Body Requires Prolonged Or Increased Levels Of A Horm
/in Uncategorized /by developerIn circumstances where the body requires prolonged or increased levels of a hormone, the DNA of target cells will specify the synthesis of more receptors on the surface of the cells of the target organ. This is known as what?
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Class This Week We Examined A Variety Of Music And Focused On Several Basic C
/in Uncategorized /by developerIn class this week we examined a variety of music and focused on several basic concepts that helped to link the works and also show their unique qualities. For this music hunt assignment you are asked to do the following:
1) Find a song or video that you feel has the following characteristics:
And,
2) Give the brief “facts” of the work: Title, Composer(s), Performers (artists or band name), Length of song, Record label, year of first release by this artist, etc…
3) Then give a quick description (analysis) of the work in your own words – describing how it is a good match for the assignment requirements.
4) And finally, include a URL to the location of the work so that the professor can watch/listen to the music for grading
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"
In Class We Discussed The Effect Of A Tariff On A Small Open Economy However Som
/in Uncategorized /by developerQ: In class, we discussed the effect of a tariff on a small open economy. However, some countries (e.g. the US) consume so much of some goods that their domestic demand significantly affects the world price. In this question, we will show that under such circumstances a positive tariff may be optimal for a large country.
(a) For simplicity, suppose that a good is fully imported so that there are no domestic producersof it. On a diagram, draw the domestic demand curve and the foreign supply curve of the goodto this country and show the free trade equilibrium. Mark off the equilibrium price (p) and2 the equilibrium quantity of the good. Shade the amount of consumer and producer surpluses generated by the equilibrium.
(b) Now draw another diagram which displays a tariff at rate t on the good. Show the new equilibrium price and quantity. How does the sum of consumer surplus, producer surplus, and tariff revenue compare with the sum of producer and consumer surplus in part(a)?
(c) Expand the diagram to include the epossibility of import subsidies (negative taco as in part (a), that the sum of consumer surplus, tariff revenues, and foreign producer surplus is maximized when the tariff is set equal to zero. Draw a diagram (with tariffs/subsidies on the
horizontal axis and the sum of surpluses on the vertical) that relates this total surplus to thetariff.(d) Show that, if the supply curve is upward sloping, foreign producer surplus consistently increases as tariffs are lowered to zero and continues to increase with import subsidies. Draw this curve on the same diagram as in part (c).
(e) If the domestic governments objective is to maximize the sum of consumer surplus and tariff revenue, show that this will lead it to set a strictly positive tariff.
#2 :A plot of land is owned by a Landlord but worked by a Tenant. If the Tenant provides efforts L he incurs a cost C(L), which increases at an increasing rate with L. The value of output from the plot is given by the production function y=g(L) + x with probability 0.5 and y= g(L)-x with probability 0.5, where g(L) increases at a decreasing rate with L, and x represents random variations in output due to climatic conditions. The variance of output is therefore x2. The Landlord is risk neutral,but the Tenant is risk averse with a coefficient of risk aversion given by r. The Landlord can monitor the output produced by the Tenant, but cannot observe or infer the amount of effort she exerts.
(a) Using the above information, write down the expected utility index of the two parties under(1) a wage contract, (2) a rental contract and (3) a sharecropping contract in which the tenant receives a share s of the output produced and the landlord get the rest [Hint: the cost of risk to the Tenant under a sharecropping contract in this example is r(sx)^2].
(b) In each of these contracts describe how the risk is allocated between to two parties. What about the incentives faced by the Tenant to exert effort ?
(c) With the aid of a diagram, explain how the theoretical constrained-efficient output share, s(and the associated effort level, L*), is determined in a share-cropping contract.
(d) Suppose a new crop variety is introduced which is less sensitive to climate variations, so that x; and hence the marginal cost of risk, declines. According to the above theory, how should this affect the optimal sharing rule ?
Question onea. The market demand curve for the imported commodity will shift to theright and the market supply is not changed thus the equilibrium quantitygoes up and the equilibrium price rises…
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"