题目内容
The protective effect of a tariff occurs to the extent that less efficient domestic production is substituted for more efficient foreign production.
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A tariff can increase the welfare of a ''large'' levying country if the favorable terms-of- trade effect more than offsets the unfavorable protective effect and consumption effect.
An import tariff will worsen the terms of trade for a ''small'' country but improve the terms of trade for a "large'' country.
If the world price of steel is $600 per ton, a specific tariff of $120 per ton is equivalent to an ad valorem tariff of 25 percent.
There is widespread agreement among economists that import tariffs increase overall employment in the levying country.
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