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."

---

Definitions:

Substitute Decision-Maker

An individual appointed or designated to make healthcare or financial decisions on behalf of someone who is unable to make such decisions for themselves.

M'Naghten Standard

A legal standard used to determine if a defendant was insane at the time of committing a crime, focusing on the ability to understand right from wrong.

Actus Reus

In Canadian criminal law, the prohibited physical act that, together with the mens rea, defines a criminal offence.