Economics Homework Help

I’m studying for my Micro Economics class and need an explanation.

Listen to this Planet Money podcast linked below before continuing with this assignment.

Summary: Believe it or not, there is a chicken tax and it actually applies to automobiles! Planet Money discusses the value of tariffs, and why the chicken tax is still around.

Discussion Board Assignment

Answer the following questions. You must answer all questions to receive credit. 

1. According to the podcast, why and how is chicken the reason American trucks dominate the truck market in the United States? Briefly explain.
2. Name two reasons a party (e.g., a politician or an industry association) may want to impose a tariff?
3. Who are they usually trying to protect? Who would be hurt by a tariff on automobiles? Explain.
4. Describe how competition encourages innovation? In your answer to this question, include a discussion on why American trucks “basically stayed the same” over the years.
5. Describe ways foreign companies tried to get around American-imposed tariffs on automobiles.
6. Do you think the methods you described in your previous answer are efficient for an economy? Why or why not?
7. Lastly, how can a tariff be used as a bargaining chip? In your opinion, is that a good reason to impose tariffs – why or why not?