Wednesday, May 27, 2015

China Reduces Import Tariffs

The Wall Street Journal reports that China is reducing import duties for products like cosmetics an diapers.  As I show in both Principles of Microeconomics and Global Economics and Business as tariffs fall overall economic well-being increases even though government tariff revenue decreases due to the gains to consumers overall surplus from paying lower prices and giving consumers an incentive to purchase more products.

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