Macroeconomics: International Trade - International Trade - Trade Restrictions

3 important questions on Macroeconomics: International Trade - International Trade - Trade Restrictions

How can we analyze the effects of a tariff on a country's economic welfare or wellbeing?

By looking at consumer surplus (CS) and producer surplus (PS).

What is the formula to get the are of a triangle (to calculate consumer surplus (CS))?

1/2 x base x height

True or False. Opponents of free trade might argue that trade destroys jobs.

True

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