Asked by
Aaliyah Foster
on Nov 17, 2024Verified
If a small country imposes a tariff on an imported good, domestic sellers will gain producer surplus, the government will gain tariff revenue, and domestic consumers will gain consumer surplus.
Tariff
A tax imposed by a government on imported or exported goods to protect domestic industries or to generate revenue.
Producer Surplus
The disparity between the amount producers are prepared to take for a product or service and the amount they actually get.
Tariff Revenue
The income generated for a government from taxing imported goods.
- Examine the impact of tariffs and quotas on local manufacturers, buyers, and public finances.
- Scrutinize the potential advantages of unregulated versus tightly controlled trade transactions.
Verified Answer
JS
Learning Objectives
- Examine the impact of tariffs and quotas on local manufacturers, buyers, and public finances.
- Scrutinize the potential advantages of unregulated versus tightly controlled trade transactions.
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