Term
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Definition
produce goods and services that are sold abroad.
EX: China exports rice to the US |
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Term
| Import competing industries |
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Definition
| Refers to an industry that competes with imports. That is, in a two-good model with trade, one good is the export good and the other is the import-competing good. |
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Definition
is when a government does not attempt to increase or decrease the levels of imports and exports
EX: not interrupting trades natural flow |
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Definition
| the imposition of duties or quotas on imports in order to protect domestic industry against foreign competition |
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Definition
| a tax on imported goods and services |
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Term
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Definition
| A limit on the number of products in certain categories that can be imported. |
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Definition
Self Sufficient Country
EX: a country that does not need to import or export goods or services to meet needs |
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Term
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Definition
| A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive |
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Term
| Forward shifted taxes (------>) |
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Definition
the portion of a tax that consumers pay in the form of a higher price per unit
HINT: consumers; higher price |
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Term
| Backward Shifted Unit (<----) |
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Definition
the amount of a tax that producers pay in the form of lower revenue per unit
HINT: producer; lower revenue |
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Term
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Definition
the amount of taxes that are forward shifted and the amount of taxes that are backward shifted
HINT: ----> taxes + <----- taxes = tax revenue |
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Term
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Definition
| is a country that is so small that its consumption and production amounts do not affect the international price. The residents of the small country follow the international price of each good |
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Term
| Effects of a tariff on prices in a small country |
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Definition
1. the domestic price that the local consumers pay equals the global price plus the tariff amount
HINT: Domestic price= world price + tariff |
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