TRADE-RELATED DIAGRAMS Flashcards
1
Q
Absolute advantage: production possibilities
A
2
Q
Absolute advantage production possibilities
A
3
Q
Absolute advantage production possibilities
A
4
Q
Comparative advantage production possibilities
A
5
Q
Tariff model; tariff imposed on good raises tax revenue but causes a welfare loss
A
6
Q
Removal of tariff increase imports from Q1Q2 to Q3Q4
A
7
Q
Tarriff set so price rises above domestic market equilibrium means there will be no imports and the market equilibrium will be determined domestically
A
8
Q
Reduction in tariff
A
9
Q
Impact of export subsidy on price of exports (vertical distance = subsidy per unit)
A
10
Q
Import Quota
A
11
Q
Welfare loss of an import quota
A
