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Matching Quiz
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Match the terms on the left with the definition in the column on the right




Match:
1


distortions

2


externalities

3


"second best" world

4


specificity rule

5


infant industry argument

6


adjustment assistance

A)gaps between the private and social benefits or costs of an activity.
B)Use the policy rule that is closest to the position of the distorting gap between private and social incentives.
C)net effects on parties other than those agreeing to buy and sell in a marketplace.
D)a world in which there are gaps between private and social benefits or costs.
E)a temporary tariff may be justified because it cuts down on imports while a domestic industry learns how to produce at low enough costs to compete without the help of a tariff.
F)payments offered to workers in import-threatened industries







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