9) An import tariff will cause the relative demand for ________ to ________ and the relativesupply for ________ to ________A) exports; increase; exports; decreaseB) exports; increase; imports; decreaseC) exports; decrease; exports; increaseD) imports; decrease; imports; increaseE) imports; increase; imports; decrease
Question
- An import tariff will cause the relative demand for ________ to ________ and the relativesupply for ________ to ________A) exports; increase; exports; decreaseB) exports; increase; imports; decreaseC) exports; decrease; exports; increaseD) imports; decrease; imports; increaseE) imports; increase; imports; decrease
Solution
An import tariff is a tax imposed by a government on goods imported from other countries. The effect of an import tariff is to increase the price of imported goods, making them less competitive compared to domestic goods.
So, the correct answer is:
B) exports; increase; imports; decrease
Explanation:
B) Exports; Increase: When an import tariff is imposed, domestic goods become relatively cheaper compared to imported goods. This leads to an increase in the demand for domestically produced goods, which are often exported.
Imports; Decrease: The import tariff makes imported goods more expensive, which decreases the relative supply of imported goods as they become less competitive in the domestic market.
Similar Questions
10) An export subsidy will cause the term of trade of the ________ country to ________ andwill ________ the countryA) importing; suffer; benefitB) exporting; improve; benefitC) importing; improve; harmD) importing; suffer; harmE) exporting; suffer; harm
If a good is imported into (large) country H from country F, then the imposition of a tariff incountry HA) raises the price of the good in both countries (the "Law of One Price").B) raises the price in country H and cannot affect its price in country F.C) lowers the price of the good in both countries.D) lowers the price of the good in H and could raise it in F.E) raises the price of the good in H and lowers it in F.
Tariffs on imported products are imposed for which of the following reasons?Group of answer choicesTo assert political objectivesProtection of domestic industriesAll of the these are correctCollection of revenue
Import tariffs:Question 1Select one:a.Are generally pro-consumer and anti-producer.b.Reduce the overall efficiency of the world economy.c.Create efficient utilization of resources.d.Reduce the price of foreign goods.
In the country levying the tariff, the tariff willA) increase both consumer and producer surplus.B) decrease both the consumer and producer surplus.C) decrease consumer surplus and increase producer surplus.D) increase consumer surplus and decrease producer surplus.E) decrease consumer surplus but leave producers surplus unchanged
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