Figure 7-4 -Refer to Figure 7-4.Suppose the U.S.government Imposes a $0.25 Per

question 12

Essay

Figure 7-4
-Refer to Figure 7-4.Suppose the U.S.government imposes a $0.25 per pound tariff on rice imports.Figure 7-4 shows the demand and supply curves for rice and the impact of this tariff.Use the figure to answer questions a-i.
a.Following the imposition of the tariff,what is the price that domestic consumers must now pay and what is the quantity purchased?
b.Calculate the value of consumer surplus with the tariff in place.
c.What is the quantity supplied by domestic rice growers with the tariff in place?
d.Calculate the value of producer surplus received by U.S.rice growers with the tariff in place.
e.What is the quantity of rice imported with the tariff in place?
f.What is the amount of tariff revenue collected by the government?
g.The tariff has reduced consumer surplus.Calculate the loss in consumer surplus due to the tariff.
h.What portion of the consumer surplus loss is redistributed to domestic producers? To the government?
i.Calculate the deadweight loss due to the tariff.

Recognize the principles of efficient capital markets.

Identify the components of an asset's return on investment.

Analyze the significance of historical performance of asset classes for future investment decisions.

Define Efficient Markets Hypothesis (EMH) and its forms.

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Definitions:

Personal Defense

A liability defense that is not applicable to holders in due course.

Modification

A change or alteration, often to a contract or agreement, altering its terms or conditions.

Dishonored

Referring to a financial instrument, such as a check or promissory note, that is not accepted or paid when presented for payment.

Note

A promise by the maker of the note to pay the payee of the note.