For Each of the Three Statements Below, Illustrate and Explain

question 2

Essay

For each of the three statements below, illustrate and explain why the statement is either True or False.
(a) "Other things equal, the imposition of a tariff by a (small) country on an imported good will have a less negative net welfare effect on the country than would the use of a'voluntary' export restraint (VER) by supplying countries of the import, even if the effects on domestic price and the quantity of the good imported are the same in the two situations."
(b) "Other things equal, if a country imposes an export tax of a given amount on a good,then the country can potentially enhance its welfare if it is a 'small' country but cannot possibly enhance its welfare if it is a 'large' country."
(c) "Other things equal, if a (small) country elects to assist an import-competing industry in expanding the industry's output by a given amount, the net welfare effect on the country will be the same whether or not the assistance is given in the form of an import tariff or in the form of a production subsidy to the industry."

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Definitions:

Time Ticket

A document that records the amount of time an employee spends on different jobs and tasks.

Job Cost Sheet

An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.

Direct Labor

The wages or costs directly associated with the production of goods or the provision of services, involving labor directly involved in manufacture or service delivery.

Perpetual Inventory

An immediate inventory transaction recording method, utilizing computerized point-of-sale systems and enterprise asset management software for accounting purposes.