ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the price decreases and quantity imported increases
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trade barriers have no effect on price or quantity of goods
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the price rises and the quantity imported decreases
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the price decreases, and quantity imported decreases
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Detailed explanation-1: -Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets. This results in a lower domestic price.
Detailed explanation-2: -A tariff is a tax levied on an imported good with the intent to limit the volume of foreign imports, protect domestic employment, reduce competition among domestic industries, and increase government revenue.
Detailed explanation-3: -A tariff barrier affects the price of imported products, whereas non-a tariff barrier affects the quantity, price, or both of the imported products.
Detailed explanation-4: -Tariff identifies the imposition of tax on products that are being imported into a country. It makes the products costlier to discourage imports. The government imposition of tariffs often causes the domestic price to drop in the world economies.
Detailed explanation-5: -When a country imposes tariffs, it is likely to cause: Higher prices for the import-competing goods. Tariffs tend to reduce the volume of imports by: Making them more expensive to domestic consumers.