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Tariffs definitions

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  • Tariff
    A tax levied on imported goods, raising their price in the domestic market and affecting trade flows.
  • Import
    A good or service brought into a country from abroad to satisfy domestic demand unmet by local suppliers.
  • Domestic Supply
    The quantity of goods produced and offered for sale by local producers within a country.
  • World Price
    The prevailing price of a good on the global market, often lower than domestic prices without trade barriers.
  • Consumer Surplus
    The net benefit consumers receive when they pay less for a good than the maximum amount they are willing to pay.
  • Producer Surplus
    The net benefit producers gain when they sell at a market price higher than their minimum acceptable price.
  • Government Revenue
    Funds collected by the state from tariffs, calculated as the tariff rate multiplied by the quantity of imports.
  • Deadweight Loss
    The loss of economic efficiency resulting from reduced mutually beneficial trades due to tariffs.
  • Protective Tariff
    A trade barrier designed to shield domestic industries from foreign competition by raising import prices.
  • Revenue Tariff
    A tax on imports primarily intended to generate income for the government rather than restrict trade.
  • Quantity Demanded
    The total amount of a good that consumers are willing and able to purchase at a given price.
  • Quantity Supplied
    The total amount of a good that producers are willing and able to sell at a given price.
  • Free Trade
    An economic policy allowing goods to move across borders without tariffs or other trade barriers.
  • Economic Efficiency
    A state where resources are allocated to maximize total surplus, with no deadweight loss present.
  • Foreign Competition
    The presence of overseas producers offering goods in the domestic market, often at lower prices.