1. Explain in detail a) Economic externalities arise because of the enactment of tariffs. Is there a way to account for such externalities? Can this be related with Coase’s and Pigou’s work. b) Are there any similarities and differences between Tariffs and Quotas?

1. Explain in detail a) Economic externalities arise because of the enactment of tariffs. Is there a way to account for such externalities? Can this be related with Coase’s and Pigou’s work. b) Are there any similarities and differences between Tariffs and Quotas?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 6CQQ

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1. Explain in detail

a) Economic externalities arise because of the enactment of tariffs. Is there a way to account for such externalities? Can this be related with Coase’s and Pigou’s work.

b) Are there any similarities and differences between Tariffs and Quotas?

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