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This increase in total surplus results from the

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This increase in total surplus results from the higher price and increased production and is the gain from exports What are international trade restrictions? Tariffs, import quota, other import barriers, export subsidies A tariff is a tax on a good that is imposed by the importing country when an imported good crosses its international boundary Temptation to impose tariffs is strong because they provide revue to the government and enable the government to satisfy self-interest of the people who earn their incomes in the import-competing industries
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Effects of Tariff: Rise in price of product quantity of product bought in U.S. decreases quantity of product produced in U.S. increases quantity of product imported in U.S. decreases U.S. government collects a tariff revenue U.S. consumers of the good lose U.S. producers of the good gain U.S. consumers lose more than U.S. producers gain Society loses: a deadweight loss arises An import quota is a restriction that limits the max quantity of a good that may be imported in a given period Import quotas enable the government to satisfy the self-interest of the people who earn their incomes in the import-competing industries Effects of Import Quota: prices rises
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