BuyFindarrow_forward

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040

Solutions

Chapter
Section
BuyFindarrow_forward

Economics For Today

10th Edition
Tucker
Publisher: Cengage Learning
ISBN: 9781337613040
Chapter 28, Problem 7SQ
Textbook Problem
1 views

A tariff is a

  1. a. tax on an exported product.
  2. b. limit on the number of goods that can be exported.
  3. c. limit on the number of goods that can be imported.
  4. d. tax on an imported product.
  5. e. subsidy on an imported product.

To determine

The meaning of tariff.

Explanation of Solution

Every economy has their own natural resources, which are being used for the production of goods and services for the society. The economies will produce the commodities for which it has comparative advantage and imports the commodities for which it does not have comparative advantage. This leads to the exchange of goods and services between the countries, which is known as international trade.

Option (d):

Tariff is an important aspect of the international trade. It is a monetary barrier that regulates the import of the goods and services from other countries. A tariff is a form of tax which is imposed on the quantity of goods imported to the economy by the government. Thus, option 'd' is correct.

Option (a):

A tariff is a form of tax which is collected by the government on the imported products into the economy. The exports are the sources of foreign currency to the economy, which means the government would promote the exports. Therefore, the government would provide subsidies rather than collecting taxes from exporters. Thus, option 'a' is incorrect.

Option (b):

The government would not set a limit on the quantity of a commodity that can be exported. This is because the exports are the main sources of the foreign revenue to the country and thus, it should be promoted rather than regulating...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 28 Solutions

Economics For Today
Show all chapter solutions
add

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
What is inflation and what causes it?

Principles of Microeconomics (MindTap Course List)

Describe the four sources of funds for a business.

Foundations of Business (MindTap Course List)

The president of Southern Semiconductor Corporation (SSC) made this statement in the companys annual report SSC...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Classify consumer products

MKTG 12:STUDENT ED.-TEXT

What is a predetermined overhead rate? Explain why it is used.

Cornerstones of Cost Management (Cornerstones Series)

At what two times would an entry be made affecting the change fund?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

List the steps in the closing procedure in the correct order.

College Accounting (Book Only): A Career Approach