CLA 1- Comprehensive Learning Assessment I â€“ CLO 1, CLO 2, CLO 3
(a) Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home countryâ€™s government on
(i) the home countryâ€™s consumers of Y,
(ii) the home countryâ€™s producers of Y, and
(iii) the home governmentâ€™s tax revenues.
Assume that the country is a â€œsmallâ€ country. Then evaluate the â€œnet welfare effectâ€ of the tax on the country. Why might a country want to impose an export tax? Explain.
(b) Suppose now that the country imposing the export tax in part (a) of this question is a â€œlargeâ€ country rather than a â€œsmallâ€ country. Is it an advantage or a disadvantage for a country to be â€œlargeâ€ rather than â€œsmallâ€ when it imposes an export tax? Explain.
Provide your explanations and definitions in detail and be precise. Explain in your own words. Provide references for content when necessary. Support your statements with peer-reviewed intext citation(s) and reference(s).
*Please refer to the Grading Criteria for Comprehensive Learning Assessments (CLAs) on pages 10-11 of the syllabus for specific guidelines and expectations.