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Economics

Home > Economics > The global economy > Types of protection: tariffs, the economic theory

Multiple Choice Answers

1. If the government imposes a tariff of AB total domestic production will:
   1. Rise from 0E to 0F
   
   
   
2. The volume of imports after the imposition of the tariff is:
   3. FG
   
   
   
3. The revenue effect of the tariff is given by the area:
   1. JIKL
   
   
   
4. After the tariff, the foreign exchange earnings of overseas producers is:
   3. FJLG
   
   
   
5. If Australia removed the tariff on the clothing imported from China, we would expect:
   2. the price of clothing in Australia to fall
   
   
   
6. Tariffs on imported commodities effectively transfer income to:
   2. domestic producers
   
   
   
7. Increasing tariff protection for a country’s industries will tend to:
   2. reduce competition in the domestic market
   
   
   
8. What would be the immediate effect of the government placing a tariff on footwear?
   2. increase in the price of imported footwear
   
   
   
9. Which of the following is a benefit of free trade?
   4. all of the above
   
   
   
10. A tariff is a tax on imported goods and would be considered as a:
    2. regressive tax

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