ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a tax placed on goods imported from a country
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a ban placed on all trade with a particular country
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a tax on exported goods paid to the exporting government
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a limit on the amount of goods that can be imported from a country
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Detailed explanation-1: -A tariff is a tax imposed by one country on the goods and services imported from another country to influence it, raise revenues, or protect competitive advantages.
Detailed explanation-2: -What Is a Tariff? Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade barriers that raise prices and reduce available quantities of goods and services for U.S. businesses and consumers.
Detailed explanation-3: -A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products.
Detailed explanation-4: -The correct answer is c. The decrease in the domestic price of imported goods increases consumer surplus as a result of the quota. It is not true to say that as a result of quotas and tariffs, the domestic price will go down and increase consumer surplus. A decrease in supply results in increases in quantity demanded.
Detailed explanation-5: -Customs duties on merchandise imports are called tariffs. Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments.