【正文】
he gains from free trade (imports side) 9 Figure The static gains from free trade 10 The Welfare Effects of a Tariff in a Small Country Consider a tariff of t dollars per unit of grapes imported. Effects of the tariff 1) Raise the price of imports ? Consumers lose. 2) Raise the price of importpeting products ? Producers gain. 3) Dom. consumption declines 4) Dom. production increases 5) Imports decline due to (3) + (4) 6) Tariff revenue for the government 11 The welfare effects of a tariff in a small country A tariff raises the domestic price from Pw to Pw+t. 1. Consumer surplus declines by a+b+c+d 2. Producer surplus increases by a 3. Government revenue increases by c 4. Net cost to the economy is b+d. (the deadweight loss凈損失 of a tariff) 5. A small country never gains from tariffs. 12 Figure The effect of an import tariff 13 Figure Deadweight cost of the tariff 14 Figure International freetrade equilibrium 15 Figure Illustration of a tariff for a large country 16 Figure The contracting收縮的 spiral螺旋 of world trade, January 1929 to March1933 (total imports of 75 countries in millions of . dollar