Tariff and welfare does tariff enhance welfare?
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This document discusses tariffs and their impact on welfare. It begins by defining free trade versus protectionism. Protectionism includes tariffs as well as quotas and regulations. There are three main types of tariffs - protective, revenue-generating, and preventive. Tariffs can be specific amounts per unit or ad valorem percentages. While tariffs aim to protect domestic producers, they can decrease consumer surplus and welfare by raising prices. The effective tariff rate accounts for tariffs on both finished goods and imported inputs used in production. Examples are provided to show how tariffs on inputs affect the effective versus nominal protection rates.
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In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
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For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
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In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
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The production process: The behavior of profit – maximizing firms
The document discusses the production process and behavior of profit-maximizing firms. It defines production as the process of transforming inputs into outputs. Firms are organizations that produce goods or services to meet demand. All firms make basic decisions to maximize profits by determining production functions, inputs, outputs, and operating in the short run. The short run is when at least one input is fixed, here capital is fixed while labor is variable. The law of diminishing returns states that adding more labor with a fixed amount of capital will eventually cause the marginal product of labor to decrease.
Household behavior & Consumer choice
This document discusses concepts related to household behavior and consumer choice, including:
- Utility and the law of diminishing marginal utility
- Total utility, marginal utility, and how to calculate and graph these concepts
- Indifference curves and how they represent consumer preferences
- Budget constraints and how changes in income and prices affect the budget line
- How consumers maximize utility by equating marginal rate of substitution to the price ratio at the point where the highest indifference curve is tangent to the budget line
Elasticity Part (1)
Here are the answers to the questions:
1) Using the formula: E = (% change in QD) / (% change in P)
At point A:
% change in QD = (100 - 80)/100 = 20%
% change in P = (60 - 40)/40 = 50%
E = -20/50 = -0.4
2) The elasticity value is between 0 and -1, meaning the demand is inelastic.
3) The demand curve would be downward sloping and relatively steep, indicating inelastic demand.
Q.DXPXpointElasticityShape of demand curve
10040A-0.4InelasticSteep
Elasticity Part (2)
This document discusses key concepts of elasticity including:
1) It defines income elasticity of demand as measuring the responsiveness of demand to changes in income. It can be positive or negative depending on the good.
2) It provides rules and formulas for calculating income elasticity using point and midpoint methods. Examples are given to demonstrate calculations and determine good types.
3) It defines cross elasticity of demand as measuring responsiveness of demand for one good to price changes of another. It can be positive, negative, or zero depending on the goods' relationship.
4) Formulas and examples are given for calculating and interpreting cross elasticity.
5) Price elasticity of supply is defined
دور السياسة الضريبية فى تحقيق استدامة القدرة التنافسية للاقتصاد القومى
كيف يمكن استغلال السياسات الضريبية فى تحقيق المقدرة التنافسية للاقتصاد المصرى
How to evaluate countries economy
This document discusses how to evaluate the economy of countries using various economic indicators. It explains that while GDP, exports, reserves, and stock market indexes were commonly used in the past, they do not fully capture how well an economy is performing. More accurate indicators include gross savings, GDP per capita, debt levels, inflation rates, and poverty rates. The key is to consider multiple indicators together and understand the specific reasons for evaluating an economy, such as making an investment or understanding development progress.
Poverty
Nearly half of the world's population lives on less than $2.50 per day, with over 1 billion living on less than $1.25 per day. Billions worldwide lack adequate access to food, water, healthcare, and other basic needs. Poverty leads to millions of preventable child deaths each year from diseases, malnutrition and lack of access to vaccines and treatment. A quarter of the global population, approximately 1.6 billion people, live without electricity.
Foreign aids
Foreign aid can be both useful and unhelpful for developing countries. It can provide needed funds for investment in infrastructure, education, and healthcare. However, it also risks increasing dependency and sometimes comes with unwanted policy conditions attached. Overall, whether foreign aid benefits a developing country depends on how the funds are used and whether they complement domestic economic reforms and private investment.
The Relation between Balance of Payment and Foreign Exchange Rate
The Definition of the (BOP)
The (BOP) structure
The Surplus and Deficit of (BOP)
Purposes of Official Reserve
The nominal and real exchange rate
The exchange rate regimes
Success story
Kotanimakoto has achieved success by developing a new technology for document summarization that analyzes texts and extracts the most important elements, presenting them concisely in three sentences or less to efficiently convey the key ideas and information from the original document. The technology was created by Dr. Amr Feteha and Dr. Mohamed Osman, lecturers of public economics at Alexandria University, to help users understand long texts in less time.
applications of equilibrium
This document is a lecture on the equilibrium price and quantity, effects of shifts in demand and supply, and market equilibrium. It discusses concepts like price ceilings, price floors, normal goods, complements, and changes in demand and supply. It also contains multiple choice questions testing understanding of these economic concepts. For example, it asks how the equilibrium price and quantity would change if the income for a normal good like video games increases. It explores the effects on the market for DVDs if the price of DVD players, a complement, increases. Finally, it addresses changes in demand and supply for goods like chocolate and tea.
equilibrium
This document summarizes a lecture on market equilibrium price and quantity. It discusses how equilibrium is reached when quantity demanded (QD) equals quantity supplied (QS), using tables and graphs. The equilibrium price is where the demand and supply curves intersect. Questions and examples are provided to illustrate how equilibrium changes with shifts in demand or supply. For example, if demand or supply increases, the new equilibrium will be a higher quantity and price. The document also shows how to calculate equilibrium mathematically by setting the demand and supply equations equal to each other.
microeconomics
This document provides an introduction to basic economic concepts. It defines economics as concerned with how individuals and societies make use of limited resources to satisfy unlimited wants. Resources include natural resources, human resources, capital resources, and entrepreneurs. Human wants are goods and services people desire. Production is the process of transforming inputs into outputs. Microeconomics studies individual actors like consumers and producers, while macroeconomics studies whole economies. Scarcity means wants exceed resources, requiring choice about what to produce. Opportunity cost is the best alternative given up in a choice. The production possibility frontier graphically shows combinations of two goods an economy can attainably produce with full efficient use of limited resources.
supply
1) According to the document, the law of supply states that there is a positive relationship between the price of a good and its quantity supplied, with all other factors held equal.
2) The supply schedule and supply curve both show this positive relationship between a good's price and quantity supplied graphically.
3) The document discusses several factors that can cause shifts in the supply curve, such as changes in input prices, technology, prices of related goods, taxes, subsidies, and number of producers. An increase in any of these factors would cause the supply curve to shift rightward, while a decrease would cause it to shift leftward.
he demand theory
The document summarizes the key concepts of demand theory including:
1) The law of demand states that there is an inverse relationship between price and quantity demanded, with all other factors held constant.
2) A demand curve illustrates this relationship graphically.
3) A change in price results in movement along the demand curve, while other factors like income, tastes, and prices of related goods can cause a shift in the demand curve.
4) The market demand curve is the horizontal sum of individual demand curves for a good in the market.
microeconomics
The document summarizes key concepts in microeconomics including scarcity, opportunity cost, production possibility frontier (PPF), and different economic systems. It discusses how the PPF illustrates scarcity, choice, and opportunity cost. The PPF shows all combinations of two goods that can be produced with limited resources, is downward sloping, and shifts outward with economic growth. Points on or along the PPF are attainable and efficient while inside points are attainable but inefficient. The document also compares planned, free market, and mixed economic systems.
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دور السياسة الضريبية فى تحقيق استدامة القدرة التنافسية للاقتصاد القومى
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一比一原版(UoB毕业证)伯明翰大学毕业证如何办理
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Tariff and welfare does tariff enhance welfare?
- 1. Tariff & welfare Does tariff enhance welfare? By Dr. Mohamed Osman Lecturer of public economics-faculty of commerce Alexandria university
- 2. The main points:- - Free trade or protectionism. - Types of protectionism. - Tariff. • The definition • Types of tariff. • THE ECONOMIC & SOCIAL IMPACTS OF tariff ON IMPORTS. • EFFECTIVE RATE OF PROTICTION. • Welfare effect of tariff
- 3. Free trade Free trade: - is the trade policy under which governments impose absolutely no tariffs or restrictions on imports or exports. why free trade? 1- With free trade, domestic producers face competition from abroad and that will be more incentives to decrease costs and increase efficiency.. 2- Free trade decreases the market power of monopolies 3- Provides consumers with a greater variety of goods 4- Free trade will increase consumption 5- consumers can enjoy the lowest of prices. 6-Technology can cross over countries more easily . .
- 4. Protectionism Protectionism is the economic policy of restricting imports from other countries through methods such as tariffs on imported goods, import quotas, and a variety of other government regulations. Why protectionism? 1- Response to import. 2- Response to chronic deficits. 3- Response to recession. 4- Protect employment. 5- Protect infant sector. 6- Protect strategic industries. 7- Raise public revenues.
- 5. -Types of protectionism:- 1- Tariff. 2- Non tariff -Quotas. -Exchange rate. -Product standards. -Export subsidy.
- 6. Tariff -Tariff is a tax is imposed on imports or exports products. -The general rule is imposed tariff on imports while the exemption is the general rule for exports.
- 7. Types of Tariffs -Tariffs can be classified to three categories: 1-Protective Tariff: to protect the local industries from foreign competition. 2-Revenue Tariff: to maximize public revenue. 3-Preventive Tariff: to protect some imports to enter the domestic market.
- 8. -All types of tariff can be classified to three categories: 1-Specific tariff: is a fixed amount of tax per unit of imported or exported products 2-Ad- valorem tariff: is imposed as a certain percentage of the value of imports or exports. 3-Compound Tariff: The tariff includes both two types of tariff, specific and ad - valorem tariff.
- 9. THE ECONOMIC & SOCIAL IMPACTS OF tariff ON IMPORTS - The tariff on imports can be classified to three types: -Protective tariff. -Revenue tariff. -Preventive tariff. -What are the impact of these types of tariffs on the domestic production , consumer's welfares and the internal prices????.
- 10. Consumer surplus: measure the difference between the amount that the buyers would be willing and able to pay for certain goods and the actual amount they are paying. -All area under the demand curve reflects the consumer surplus if the price equal zero. ** Any increase of market price (other things being equal) will lead to decrease consumer surplus. Producer surplus: is the difference between the amount of revenue received by producer and the total variable cost.
- 11. EFFECTIVE RATE OF PROTICTION -Economists distinguish between the nominal tariff and the effective tariff rates. -The nominal tariff rate is published, but the effective tariff takes in consideration not only the nominal tariff rate on finished products but also tariff rate that is imposed on the imported inputs that are used in producing the finished products.
- 12. EX. Effective rate measures the percentage increase of the domestic production of desktops per unit of output as a result of imposing both tariff on imported finished desktops and tariff on the imported inputs.
- 13. -In general the effective tariff can be estimated by using the following formula: E = N – a b 1 – a E refers to effective tariff rate (effective rate of protection. N refers to nominal tariff rate of the final products. a refers to the ratio between the value of imported inputs and the value of the domestic finished product. b refers to the nominal tariff on the imported inputs.
- 14. Example: Suppose the nominal tariff on clothes is 25% of its value, tariff on the imported inputs of clothes is 0%, the ratio between the value of imported inputs and the value of the domestic output of clothes equal 67%, Determine the effective rate of tariff on clothes ?? :Solution:- N= 25% a= 67% b= 0% Effective rate of protection ( E ) = E =25% – (67% * 0%) = 75% 1 – 67% This result means the effective tariff rate is greater than the nominal tariff rate .
- 15. Case (2):- N=25% a=67% b=15% E =25% – (67% * 15%) = 45% 1 – 67% This result means the imposition of tariff on the imported inputs reduces the effective tariff rate from 75% to 45%. Case (3):- N=25% a=67% b=25% E =25% – (67% * 25%) = 25% 1 – 67% This result means that the effective rate is equal the nominal rate. Case (4):- N=25% a=67% b=30% E =25% – (67% * 30%) = 15% 1 – 67% This result means the effective tariff rate is less than the nominal tariff rate . .
- 16. -Any decreasing of the imported inputs tariff will make the tariff on the imported finished more effective to protect the finished domestic products.