Economic Theory in General, and Trade Theory in Particular Are

question 16

Essay

Economic theory in general, and trade theory in particular are replete with equivalencies. For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.

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Definitions:

Change Blindness

A perceptual phenomenon where a change in a visual stimulus goes unnoticed by the observer, indicating the limitations of human attention.

Text Messages

Written messages sent or received over a mobile phone network or the internet.

Dangerous

The quality of being able or likely to cause harm or risk to safety.

American Drivers

Refers to individuals operating motor vehicles in the United States, often studied in the context of traffic behavior, safety norms, and cultural attitudes towards driving.