ECN 211 Exam 2 With 100% Correct Answers| Graded A+

Tariff A tax on imported goods Who benefits/loses from free trade? 1. Foreign producers of steel (exports steel to US) 2. Buyers of steel and steel-related products (price falls and quantity increases) Who is worse off because of free trade? 1. Domestic producer of steel (sells lower quantity and at a lower price) Who benefits from tariffs? (US steel producers example) 1. Domestic producers of steel (sells more at a higher price) Who is worse off because of the tariff? 1. Foreign producers of steel (sells lower quantity) 2. Domestic producers of goods that use steel 3. Buyers of steel- and steel-related products Tariff Bottom Lime Trade restrictions benefits the protected domestic industry to the detriment of buyers of goods that use those products Gross Domestic Product (GDP) The market value of all final goods and services produced within a country in a given period of time How to calculate