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Understanding Tariffs and Their Impact

Authored by Ata Bhatti

Other

12th Grade

Used 2+ times

Understanding Tariffs and Their Impact
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15 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a tariff?

A tax on exports

A tax on imports

A subsidy for domestic producers

A quota on foreign goods

Answer explanation

A tariff is specifically a tax imposed on imports, making imported goods more expensive. This is intended to protect domestic industries by encouraging consumers to buy local products instead.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do tariffs generally affect the price of imported goods?

They decrease the price

They have no effect on the price

They increase the price

They stabilise the price

Answer explanation

Tariffs are taxes imposed on imported goods, which generally lead to higher costs for importers. These costs are often passed on to consumers, resulting in increased prices for imported goods.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a potential effect of tariffs on international trade?

Increase in trade volume

Decrease in trade volume

No change in trade volume

Elimination of trade barriers

Answer explanation

Tariffs increase the cost of imported goods, making them less competitive compared to domestic products. This typically leads to a decrease in trade volume as countries import less due to higher prices.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How might tariffs impact economic growth in the short term?

They always boost economic growth

They can lead to higher prices and reduced consumption

They have no impact on economic growth

They guarantee increased employment

Answer explanation

Tariffs can increase the cost of imported goods, leading to higher prices for consumers. This can reduce overall consumption, negatively impacting economic growth in the short term.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one way tariffs can affect international relations?

They always improve diplomatic ties

They can lead to trade wars

They have no impact on international relations

They ensure mutual economic benefits

Answer explanation

Tariffs can strain international relations by prompting retaliatory measures, leading to trade wars. This escalation can harm diplomatic ties and economic stability, making the correct choice "They can lead to trade wars."

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a common argument in favour of tariffs?

They reduce government revenue

They protect domestic industries

They increase foreign competition

They lower consumer prices

Answer explanation

A common argument in favor of tariffs is that they protect domestic industries by making imported goods more expensive, thus encouraging consumers to buy locally produced products.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential negative effect of tariffs on consumers?

Lower prices for goods

Increased variety of products

Higher prices for goods

Improved product quality

Answer explanation

Tariffs increase the cost of imported goods, leading to higher prices for consumers. This can reduce purchasing power and limit access to affordable products, making 'Higher prices for goods' the correct choice.

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