Chapter: 4 Tariffs
4 important questions on Chapter: 4 Tariffs
Tariff Welfare Effects: Large Nation Model
- Redistributive effect (From domestic consumers to domestic producers)
- Deadweight loss (Consumption effect + Protective effect)
- Revenue effect (Domestic revenue effect)
- Terms-of-trade effect (Economic effects of an import tariff)
Beggar-thy-neighbor policy
Should this practice be employed, one could invite retaliation!!
Effects of import tariffs on exporters
Can result in higher prices and depending on the elasticity of demand can reduce overseas sales.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Raise the cost of living
- Higher wages and higher production costs
- International repercussions
- Lead to reductions in domestic exports from possible retaliatory tariffs.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding