Economics Homework Help. Miami University Tariffs and Quota Under Perfect Competition Questions
- What is the difference between a tariff and a quota?
- How do you find consumer surplus and producer surplus if you have a demand-supply graph?
- When a small country engages in free trade, what will be its domestic price?
- Where can you find the increase in total surplus when a small country engages in free trade?
- If a small country puts a per-unit tariff on an imported product, will the world price of the product change? Why?
- What is the deadweight loss in total surplus when a small country switches from free trade to using a tariff?
- If a LARGE country puts a per-unit tariff on an imported product, will the world price of the product change? Why?
- What is the change in a large Home country’s total surplus when it switches from free trade to using a tariff?
- What is the terms of trade gain when a large country applies a per-unit tariff?
- What is an optimal tariff for a large country?
- Think about a small country setting a quota on an imported product. What is an equivalent import tariff of the import quota? What is the meaning of quota rents?
- How do different methods of allocating an import quota affect a country’s total surplus compared to using an equivalent import tariff?
