Final answer:
A 32 cents tax on each pair of eyeglasses imported into a nation is a specific tariff. A tariff reduction, like that on flat screen TVs, typically leads to lower consumer prices and higher equilibrium quantities in the market.
Step-by-step explanation:
A tax of 32 cents levied for each pair of eyeglasses imported into a nation is an example of a B) Specific tariff. A specific tariff is a fixed fee imposed by a country on a specific item per unit, as opposed to an ad valorem tariff which is based on a percentage of the item's value. An import quota, on the other hand, is a limitation on the quantity of goods that can be imported, while a quota rent is the economic rent received by the holder of the import license.
When it comes to the effect of tariff reduction, such as the hypothetical scenario where the U.S. government cuts the tariff on imported flat screen televisions, we can apply a four-step analysis to predict the impact on equilibrium price and quantity in the market: So, the reduction in tariffs tends to increase the accessibility of goods, reduce prices for consumers, and boost the quantity of goods available in the market.