The general formula used for calculating the net national loss from a trade barrier as a percentage of GDP may fail to account for:

Question

Quizplus · Accepted Answer

The general formula for calculating the net national loss from a trade barrier typically includes the production and consumption effects, as well as government revenue generated from the trade barrier. However, it may fail to account for the rent-seeking costs of local firms, which are the resources expended by firms to maintain or establish trade barriers for their benefit.

The General Formula Used for Calculating the Net National Loss