review_ch.8 - 3. True-false-uncertain. Explain. A large...

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Econ 306 Ch. 8 review questions 1. Identify the changes in consumer and producer surplus as a result of imposing a tariff on an imported product in a small open economy. Determine the net effect from the tariff. Use a graph and explain. 2. Identify the changes in consumer and producer surplus as a result on imposing a tariff on an imported product in a large open economy. Determine the net effect from the tariff.
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Unformatted text preview: 3. True-false-uncertain. Explain. A large country always benefits from imposing a tariff as compared to free trade. A small country always loses from imposing a tariff as compared to free trade. Domestic producers benefit from a tariff. Tariffs reduce the volume of international trade. 4. End of chapter questions - #1, 2, 3, 4, 5....
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