Post Utme Rhema University 2021 Commerce Question 8

Practice objective / multiple choice question 8 from the 2021 Post Utme Rhema University Commerce examination.

Post Utme Rhema University 2021 Commerce Objective / Multiple Choice
Question 8 POST_UTME_RHEMA_UNIVERSITY • 2021 • COMMERCE • objective

A foreign trade agreement between two countries requires that all imports be subject to a 10% tariff. What is the effect of this tariff on the importing country's economy?

Answer Options

A. The tariff increases the importing country's GDP.
Correct Answer B. The tariff decreases the importing country's GDP.
C. The tariff has no effect on the importing country's GDP.
D. The tariff increases the importing country's inflation rate.
Correct Answer
B
Correct Option:
The tariff decreases the importing country's GDP.

About This Question

This is Post Utme Rhema University 2021 Commerce Question 8. It is one of the objective questions from the 2021 Post Utme Rhema University Commerce examination.

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