What Impact Do Trade Policies, Such as Tariffs and Quotas

question 36

Essay

What impact do trade policies, such as tariffs and quotas, have on the standard of living?

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Definitions:

Industry

A sector of the economy that involves the production and manufacturing of goods or the provision of services.

Long Run

A period during which all factors of production and costs are variable, in contrast with the short run where some costs are fixed.

Short Run

A period in economics during which at least one input, such as plant and equipment, is fixed, focusing on immediate effects of economic decisions.

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.