Econ 200B Lecture 8 - Econ 200B Lecture 8 Overall economic surplus rises with imports The gains to consumers outweigh the losses to producers Tariffs

Econ 200B Lecture 8 - Econ 200B Lecture 8 Overall economic...

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Econ 200B Lecture 8 Overall economic surplus rises with imports. The gains to consumers outweigh the losses to producers. Tariffs : tax imposed by a govt on good imported into a country Externalities : Pollution is an externality: a benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service Think of an externality like a side-effect Supply curve = marginal cost Supply curve 2 = marginal social cost Its more benefitial to sell socially efficient
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