Methods of Protection (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a tariff?
What is a tariff?
A tax on imported goods
How do tariffs affect consumers?
How do tariffs affect consumers?
They face higher prices & buy fewer goods
What is the trade-off with tariff success?
What is the trade-off with tariff success?
More import restriction means less revenue
What is an import quota?
What is an import quota?
A restriction on import volume
How do quotas differ from tariffs regarding government revenue?
How do quotas differ from tariffs regarding government revenue?
Quotas don't directly generate revenue
What happens to the supply curve when a subsidy is provided?
What happens to the supply curve when a subsidy is provided?
It shifts rightward
Why do economists prefer subsidies to tariffs?
Why do economists prefer subsidies to tariffs?
Subsidies are abolished more quickly
What do local content rules mandate?
What do local content rules mandate?
Minimum % of locally manufactured parts
What is the main purpose of export incentives?
What is the main purpose of export incentives?
To capture foreign markets
According to the IMF study, what did a 3.6% tariff increase cause over 5 years?
According to the IMF study, what did a 3.6% tariff increase cause over 5 years?
0.4% reduction in GDP