Term
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Definition
| A tax of 20 cents per UNIT of imported cheese is an example of... |
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Term
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Definition
| A tax of 15 percent per ITEM would be an example of... |
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Term
| Redistribution Effect (of import tariff) |
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Definition
| Transfer of income from the domestic buyers to domestic producers of the good |
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Term
| Nationally optimal Tariff |
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Definition
| The highest difference between the part of the tariff revenue paid by the exporting country and the welfare loss associated with the consumption and production effects is attained. |
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Term
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Definition
Operates by 1.) Limiting the quantity of imports
2.) Increasing the cost of getting imports to market
3.) Creating uncertainty about the conditions under which imports will be permitted |
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Term
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Definition
| free trade is economically efficient |
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Term
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Definition
| spillover effects, externalities, and incentive distortions. |
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