The introduction of tariffs and quotas

Economics

WAEC 2013

A. reduce th prices of imports
B. increase the demand for locally made goods
C. discourage domestic industries from becoming more efficient
D. reduce the prices of locally made goods

WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now

Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts

Correct Answer: Option B

Explanation

One of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it.

Previous Next

Go back to Econs classroom

Report an Error Ask A Question Download App