The Table Given Below Shows the Pre-Tariff and Post-Tariff Prices

question 26

Essay

The table given below shows the pre-tariff and post-tariff prices, domestic production and consumption of copper in the United States. Suppose the U.S. government imposes a specific tariff of $0.20 per pound on copper imports by the country. $\begin{array}{|l|l|l|} \hline& \text { Pre-tariff } & \text { Post-tariff } \\\hline \text { World price } & \$ 0.50 \text { per } \mathbb{b} . & \$ 0.40 \text { per } \mathbb{b} . \\\hline \text { U.S. domestic price } & \$ 0.50 \text { per } \mathbb{b} . & \$ 0.60 \text { per } \mathbb{b} \text {. } \\\hline \text { U.S. consumption } & 250 \text { million } \mathbb{b} . & 210 \text { million } \mathbb{b} . \\\hline \text { U.S. production } & 100 \text { million } \mathbb{b} . & 140 \text { million } \mathbb{b} . \\\hline\end{array}$
a.Calculate the welfare loss to U.S.consumers of copper from the tariff.
b.Calculate the gain to U.S.producers of copper from the tariff.
c.Calculate the revenue collected by the U.S.government from taxing copper imports.
d.Calculate the net gain or loss to the U.S.economy as a whole from the tariff.

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Definitions:

Iconic

Describing something or someone as highly recognizable, widely known, and regarded as a symbol of a particular era, genre, or field.

Explicit Memories

Memories that can be consciously recalled, such as facts and events, part of declarative memory.

Effortful Processing

Effortful processing is a type of memory encoding that requires awareness, attention, and effort to encode information.

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit similar responses.