Practice Questions
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How do tariffs typically affect consumer behavior in a country that imposes them?
When tariffs raise the price of imported goods, people often choose to buy products made in their own country. Other options are incorrect because Som...
How do tariffs generally affect economic welfare and domestic producers in a country?
Tariffs help local businesses by making foreign goods more expensive. Other options are incorrect because This answer suggests that tariffs lower pric...
How do import quotas differ from tariffs in the context of trade policies, and what impact do they have on international trade?
Import quotas limit how many goods can come into a country. Other options are incorrect because This idea is wrong because quotas and tariffs actually...
How do retaliatory tariffs impact global supply and demand in the context of globalization?
Retaliatory tariffs make foreign goods more expensive. Other options are incorrect because This answer suggests that tariffs increase supply; This cho...
How do tariffs as trade barriers affect globalization and the implementation of trade policies in a country?
Tariffs make imported goods more expensive. Other options are incorrect because Some might think tariffs lower costs, but they actually raise prices; ...
What is one primary effect of imposing tariffs on imported goods?
When tariffs are added to imported goods, it makes those goods more expensive. Other options are incorrect because Some might think tariffs lower gove...
What is a primary effect of tariffs as a trade barrier on imported goods?
Tariffs are taxes on imported goods. Other options are incorrect because Some might think tariffs lower prices; It might seem that tariffs increase ch...
What is the primary purpose of imposing protective tariffs on imported goods?
Protective tariffs help local businesses by making imported goods more expensive. Other options are incorrect because Some might think tariffs are mai...
Which of the following statements accurately describe the effects of tariffs on international trade? Select all that apply.
All statements about tariffs in this question are incorrect. Other options are incorrect because People often think tariffs help consumers by protecti...
A country has been importing a certain good due to a lower world price compared to its domestic price. If the government imposes a tariff on this good, which of the following outcomes can be expected in the domestic market?
When a tariff is added, it makes imported goods more expensive. Other options are incorrect because Some might think tariffs lower prices, but they ac...
How does imposing a tariff typically affect consumer surplus in a domestic market?
When a tariff is added, it raises the price of imported goods. Other options are incorrect because This option suggests that tariffs lower prices, but...
A government imposes a tariff on imported steel to protect domestic manufacturers. Which of the following outcomes best explains the economic rationale behind this action?
The tariff raises the cost of imported steel. Other options are incorrect because Some might think that a tariff reduces the total amount of steel ava...
If a country imposes a tariff on imported goods, what is the most likely immediate effect on domestic consumers?
When a tariff is added, it raises the cost of imported goods. Other options are incorrect because Some might think tariffs increase the number of good...
Tariffs affect international trade in a similar way that increasing production costs affect a company's pricing strategy. Just as higher production costs might lead a company to increase prices, resulting in reduced demand, tariffs lead to higher prices for imported goods, which in turn affects domestic consumption. In this analogy, what would be the outcome of a tariff on imported goods? A: Increased domestic consumption, B: Decreased domestic consumption, C: No change in domestic consumption, D: Increased imports from non-tariff countries
When tariffs are added, imported goods become more expensive. Other options are incorrect because Some might think higher prices mean people will buy ...
When a tariff is imposed on imported goods, the domestic price of those goods typically _______ , leading to a decrease in consumer surplus and an increase in producer surplus.
When a tariff is added, it raises the price of imported goods. Other options are incorrect because Some might think tariffs lower prices; It's a commo...
Order the steps that occur when a tariff is imposed on imported goods, starting from the initial market conditions.
When a tariff is added, it makes imported goods more expensive. Other options are incorrect because Some might think that domestic producers will imme...
If a country imposes a tariff on imported goods leading to a decrease in consumer surplus, what is the most likely underlying cause of this effect?
A tariff makes imported goods more expensive. Other options are incorrect because Some might think that more domestic production means more choices; I...
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