ALLIED ECN150 MODULE 8 HOMEWORK ASSIGNMENT

Welcome to the Module 8 Homework Assignment for ECN 150: Introduction to Microeconomics.This section prepares you to complete this assignment successfully. Please follow these instructions to complete and submit this assignment.You will create a document in either a .doc or .rtf format to record and save your work. If you have never created documents in an .rtf format, please visit the Academic Resource Center and click on Tutorials. You will then see a list of tutorials on the following page. Click on RTF Tutorial.Read the instructions carefully and review your work before you submit your assignment.Include a title page with this assignment. Your title page should follow standard APA formatting. Please view the .allied.edu/Pages/ViewPage.aspx?GroupID=189″>Title Page Example.When you are ready to submit the assignment, click the Start button at the bottom of the page to access the submission page and follow the instructions.Running head: [INSERT
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TITLE HERE]
Student
Name
Allied
American University

Author
Note
This
paper was prepared for [INSERT COURSE NAME], [INSERT COURSE ASSIGNMENT] taught
by [INSERT INSTRUCTOR’S NAME].

Directions:
Please answer each of the following questions in a paragraph for each. Explain your thoughts with theory and
examples where applicable.

1. Explain
the difference between absolute advantage and comparative advantage. Which is more important in determining trade
patterns, absolute advantage or comparative advantage? Why?

2. What
are the arguments in favor of trade restrictions, and what are the
counterarguments? According to most
economists, do any of these arguments really justify trade restrictions? Explain.

3. Using
the graph, assume that the government imposes a $1 tariff on hammers. Answer the following questions given this
information.

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a. What is
the domestic price and quantity demanded of hammers after the tariff is
imposed?
b. What is
the quantity of hammers imported before the tariff?
c. What is
the quantity of hammers imported after the tariff?
d. What would
be the amount of consumer surplus before the tariff?
e. What would
be the amount of consumer surplus after the tariff?
f. What
would be the amount of producer surplus before the tariff?
g. What would
be the amount of producer surplus after the tariff?
h. What would
be the amount of government revenue because of the tariff?
i. What
would be the total amount of deadweight loss due to the tariff?