Question

If Bangladesh decides to open its doors to international trade in wheat without restrictions, it will import:

a) A variable amount of wheat
b) A fixed amount of wheat
c) No wheat
d) Infinite wheat

Suppose the Bangladeshi government wants to reduce imports to exactly 200 bushels of wheat to help domestic producers. A tariff of $_____ per bushel will achieve this:

a) 200
b) 100
c) 50
d) 25

A tariff set at this level would raise $_____ in revenue for the Bangladeshi government:

a) 200
b) 100
c) 50
d) 25

Answer 1

If Bangladesh decides to open its doors to international trade in wheat without restrictions, it will import a variable amount of wheat. To reduce imports to exactly 200 bushels of wheat, a tariff of $50 per bushel will achieve this and raise $10,000 in revenue for the Bangladeshi government.

Step-by-step explanation:

If Bangladesh decides to open its doors to international trade in wheat without restrictions, it will import a) A variable amount of wheat.

Suppose the Bangladeshi government wants to reduce imports to exactly 200 bushels of wheat to help domestic producers. A tariff of $50 per bushel will achieve this.

A tariff set at this level would raise $10,000 in revenue for the Bangladeshi government.