1. What are the tools that a country can use to restrict international trade? 2. Explain the effects of a tariff on domestic production, the quantity bought, and the price. 3. Explain who gains and who loses from a tariff and why the losses exceed the gains. 4. Explain the effects of an import quota on domestic production, consumption, and price. 5. Explain who gains and who loses from an import quota and why the losses exceed the gains.
1. What are the tools that a country can use to restrict international trade? 2. Explain the effects of a tariff on domestic production, the quantity bought, and the price. 3. Explain who gains and who loses from a tariff and why the losses exceed the gains. 4. Explain the effects of an import quota on domestic production, consumption, and price. 5. Explain who gains and who loses from an import quota and why the losses exceed the gains.
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 2CQQ
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1. What are the tools that a country can use to restrict international trade?
2. Explain the effects of a tariff on domestic production, the quantity bought, and the price.
3. Explain who gains and who loses from a tariff and why the losses exceed the gains.
4. Explain the effects of an import quota on domestic production, consumption, and price.
5. Explain who gains and who loses from an import quota and why the losses exceed the gains.
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