Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments At the start of the COVID-19 pandemic, the Indonesian government temporarily eliminated importtariffs on disposable (single use) surgical masks. As a result, the domestic demand for disposablesurgical masks were fulfilled by domestic production and imports. By July 2020, 99 million surgicalmasks valued at Rp400 billion were imported to Indonesia (Kompas, 16 July 2020). That same month,industry representatives asked the government to restore the import tariff on surgical masks. Assumethat if the tariff is restored, there will still be import of surgical masks.

Welfare impact: It refers to the impact of the government policy on the economy. It takes into…

Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments

Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your arguments

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 1DQ

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