The idea that there are winners and losers from trade and that people are affected differentially by events--such as changes in taxation and tariffs--is best defined as ______.
A) differential effects
B) diverging effects
C) distributional effects
D) distinct effects

Question

Quizplus · Accepted Answer

The term "distributional effects" best captures the concept that trade and policy changes, like alterations in taxation and tariffs, have varying impacts on different groups of people, leading to winners and losers. This term emphasizes how the benefits and burdens of economic policies are distributed across different segments of the population.

The Idea That There Are Winners and Losers from Trade