Protectionism Flashcards
1
Q
How would you calculate domestic producer revenue under free trade?
A
Pw x Q1
2
Q
What is free trade?
A
international trade with no barriers placed by a government or organization
3
Q
what is protectionism?
A
Use of tarrifs, quotas, and subsidies to make domestic consumers more competitive with foreign producers
4
Q
what is a quota?
A
a limit placed on the quantity of goods that can be imported
5
Q
Protectionism aims to protect…
A
sunrise/sunset companies, domestic employment, dumping prevention
6
Q
what is dumping?
A
when a country sells a large quantity of a commodity, at a lower price than production costs, in another country
7
Q
How would you calculate the value of imports under free trade?
A
(Qd - Qs) x pw
8
Q
How would you calculate government revenue from tarrifs?
A
Q x Tarrif rate
