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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


trade adjustment assistance

7


developing government argument

8


national defense argument

A)gaps between the private and social benefits or costs of an activity.
B)states that import barriers would help the nation to have or to be ready to produce products that would be important in a future military emergency.
C)payments offered to workers in import-threatened industries.
D)Use the policy rule that is closest to the position of the distorting gap between private and social incentives.
E)net effects on parties other than those agreeing to buy and sell in a marketplace.
F)a world in which there are gaps between private and social benefits or costs.
G)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.
H)states that in poor developing countries the import tariff becomes a crucial source not of industrial protection but of government revenue.







Pugel:International EconomicsOnline Learning Center

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