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MARGINAL PRODUCT: The change in the quantity of total product resulting from a unit change in a variable input, keeping all other inputs unchanged. Marginal product, usually abbreviated MP, is found by dividing the change in total product by the change in the variable input. Marginal product lies at the very foundation of the analysis of short-run production and the subsequent explanation of the law of supply and the upward-sloping supply curve, using the law of diminishing marginal returns.

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TRADE BARRIERS

Policies enacted by the government sector of a domestic economy to discourage imports from the foreign sector. The three most common trade barriers are tariffs, import quotas, and non-tariff barriers. Trade barriers are designed to discourage imports which not only creates or increases a country's balance of trade surplus and thus increase net exports, but also to protect the domestic economy.

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