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Question:

Answer:

1). Answer:

International trade is vital for economic growth. Its increase the revenue, foreign exchange reserve and help to the domestic industry to achieve economic of scale though increasing production level. It increase the efficiency and productivity of the domestic firms through free flow of technology and to get healthy competition from world market. Increasing export increase AD that increase output and price level and increasing price level increase production level that increase income level and decrease unemployment level and boost overall healthy economy. According to the international trade theory, a country produce those products in which it has comparative advantage and import those products in which have a country has not comparative advantage. A country prefer to import those products in which its has not comparative advantage at lower cost from those countries which have comparative advantage to producing theses products. If a country produce those products in which it has not comparative advantage then the production cost will be comparatively higher than import that will not benefited for the economy. It will increase inflation in the economy and reduce consumers surplus also. A country also import capital goods that help it to increase productivity, efficiency and production level of the domestic firms and help to the economy to achieving economy of scale.

But if a country ban on import of applies or imposes tariffs or quota on the import then its decease the consumer surplus and increase inflation level. It is also harm the image of the nation and WTO raises question regarding the same. Other side if a country fully stop trading with other country then its negatively affect to the economy or may harm the economy worst. Stopping trade reduce the revenue, foreign exchange reserve, productivity and efficiency of the economy and economy affected worst. Other side it decrease AD that decrease output level level increase unemployment level. Research show that international trade support to the economy and increase income level of the people and increase their standard of living. If US stop trading with the rest of the world, especially China, in order to save US jobs then i think it will harm to the US economy and negatively affect the economy and damage job market. Stopping trade for “Protection to save jobs” is not a good idea because losses are more wider than benefits and in long-ru its affect the economy worst. Instead of stopping Interventional trade government should focus on increasing efficiency, productivity and production level of the economy and focus on supply side. The government should focus on how to increase economy of scale and get comparative advantages in world trade market. If we talk about the china then we have to consider that China is a very big trading partner of the US and paly important role in international trade of US. The trading gap (export - import) is high but the over all size of trade is very big. China is currently the largest goods trading partner with $659.8 billion in total (two way) goods trade during 2018 ( Goods exports totaled $120.3 billion; goods imports totaled $539.5 billion). So, it is not an intelligent or smart decision to ban on trade with China. It is not favorable for the US economy and job market also.

2). Answer:

Rent ceiling is a regulation that makes it illegal to charge a price (rent) higher than a specified level. If the rent ceilings is set below the equilibrium rent then its effects housing market widely. When the rent ceilings is set below the equilibrium rent then its increase demand more than supply and there is a shortage of housing in the housing market. A shortage of housing creates a black market in housing because its encourage a set price level (rent) above the ceiling level. The main reason of shortages and black markets is the gap between demand and supply of houses and the reason of of this gap is rent ceiling.

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(i) Higher Education, in this case, is characterized as a positive externality for the societal environment. This is because the spillover effect of more educated individuals in a society is primarily positive on the social (and individual) utility/benefit functions. Hence, the government, like other public goods, provides the tax credit so as to enhance the social good.

(ii) The benefits span a broad spectrum of social, political, and economic domains, mostly interconnected ones, so I will provide some examples here.

• A highly educated workforce corresponds to higher levels of productivity, which further corresponds to higher output (or yields). The increase in output not only serves the individual capabilities to grow and prosper but also has a positive effect on tax revenues for the government given the increase in tax base due to the natural increase in per capita incomes (through higher productivity). Hence, with the increased tax revenues, government spending ensures societal benefits.
• Another benefit which is an intersection between the legal and the economic domain is that of property rights and fair competition. Educated individuals can legally deter the movement towards monopoly markets and/or the violation of private property rights to ensure free and fair competition.
• Lastly, through an educated society, a participatory democracy is ensured, thus, the scope of opaque exploitation is minimized substantially, and thus, the society is benefited.

(iii) I do not specifically know which country's tax credit you are talking about, but I am sure the desired answer you can compute through a cost-benefit analysis of education as a good.