What are the different types of trade barriers? What are the arguments for trade barriers? What are the consequences of trade barriers?
Trade barriers include the use of embargoes, tariffs, quotas, and administrative barriers to limit the supply of foreign products in the domestic economy. Arguments for trade barriers include the infant industry, national security, employment, and cheap foreign labor arguments.
Trade barriers reduce the supply of foreign products, which increases their prices. This makes the domestically produced substitute more price-competitive, which increases the demand for the domestically produced product. As a result, the domestically produced product's price increases and its sales increase. Notice that the results of trade barriers are higher priced products (both foreign and domestically produced) consumers must pay.
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Refer to Figure 4-10. Suppose the market is initially in equilibrium at price P1 and now the government imposes a tax on every unit sold. Which of the following statements best describes the impact of the tax? For demand curve D1
A) the producer bears the entire burden of the tax if the supply curve is S2 and the consumer bears the entire burden of the tax if the supply curve is S1. B) the producer bears a smaller share of the tax burden if the supply curve is S2. C) the producer's share of the tax burden is the same whether the supply curve is S1 or S2. D) the producer bears a smaller share of the tax burden if the supply curve is S1.
Explain the role of economic freedom in economic development
What will be an ideal response?
What is one result of the Medicare subsidy?
A) The health care industry is more efficient than it otherwise would be. B) Patients may elect to have some treatments that are of low value to them but that are costly to provide. C) The elderly population in the United States receives a lower quality of medical care than what is provided for the elderly population in other countries. D) The number of physicians in the United States has declined.
The statement "It would be better to put up with price controls than to have continuing higher medical care prices" is an example of normative economic analysis
a. True b. False Indicate whether the statement is true or false