THE ROARING 20S 1920 1929
AMERICAN ECONOMY IN THE 1920S
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The impact of a tariff depends on the size of the country that imposes it.
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Therefore, both countries’ trade policies can have a significant impact on the price of cocoa on global markets.
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Finally, the amount of trade in the product between the countries would decrease.
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For a “large” country, the benefits of a tariff are mixed. Buyers within the country face higher prices.
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Detailed explanation-1: -These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs. A specific tariff is a tax imposed directly onto one imported good and does not depend on the value of that imported good.
Detailed explanation-2: -The correct answer is “c. The U.S. imposes a tax on sugar imported from Brazil.” This is the only answer choice that involves a tax being placed on an import. A tariff is one of the most common trade barriers, and it is a tax on an import.
Detailed explanation-3: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.
Detailed explanation-4: -Tariffs increase the price of imported goods, making domestic goods cheaper in comparison.