Start learning →

CA Foundation Economics: related Business Economics practice — page 8

The practice bank below covers broader Business Economics topics; a dedicated Economics lesson is not available yet.

Practise Business Economics with Quill →

Business Economics questions and exercises with answers

Showing questions 211–240 of 245.

What is a tariff?Read the answer and worked solution →Who ordinarily pays a tariff on imported goods at the border?Read the answer and worked solution →An export tax, when levied, is paid by whom?Read the answer and worked solution →A tariff set as a percentage of the import price is an example of which kind of tariff?Read the answer and worked solution →Besides raising revenue, why are import duties imposed?Read the answer and worked solution →What does a tariff do to the domestic price of the imported good?Read the answer and worked solution →Economists mostly conclude that tariffs have what effect on welfare?Read the answer and worked solution →When a tariff is imposed, what happens to the surplus of domestic consumers?Read the answer and worked solution →A tariff protects domestic producers. What happens to their surplus?Read the answer and worked solution →After a tariff, overall welfare of the importing country:Read the answer and worked solution →The infant industry argument says new industries need what?Read the answer and worked solution →Why do most economists reject tariffs as a cure for unemployment?Read the answer and worked solution →For vital defence industries, what do economists suggest instead of tariffs?Read the answer and worked solution →Autarky refers to which desire?Read the answer and worked solution →What is an optimal tariff designed to do?Read the answer and worked solution →Why is an optimal tariff a beggar thy neighbor policy?Read the answer and worked solution →When one country imposes high tariffs, partners often respond with what?Read the answer and worked solution →Environmental dumping is when firms gain an unfair edge from what?Read the answer and worked solution →What is the balance of payments?Read the answer and worked solution →In balance of payments accounting, how are receipts from abroad recorded?Read the answer and worked solution →How are payments made to foreigners shown in the balance of payments accounts?Read the answer and worked solution →Which of these is a component of the current account?Read the answer and worked solution →The balance of trade equals what?Read the answer and worked solution →The capital account in the broad sense records what?Read the answer and worked solution →The reserve account records what?Read the answer and worked solution →Under the broad BoP identity, a current account surplus is balanced by what?Read the answer and worked solution →A visible trade deficit means a nation is doing what?Read the answer and worked solution →If outflows exceed inflows, what pressure does the country's currency face?Read the answer and worked solution →A balance of payments crisis occurs when a nation cannot do what?Read the answer and worked solution →Currency appreciation does what to exports and imports?Read the answer and worked solution →

Worked practice questions

What is a tariff?

  1. A duty on imported goods
  2. A subsidy paid to exporters
  3. A limit on the quantity imported
  4. A ban on foreign investment
Show answer and solution

Correct answer: A. A duty on imported goods

A tariff is an import tax imposed by a government on goods coming in from abroad.

Open this question →

Who ordinarily pays a tariff on imported goods at the border?

  1. The overseas exporter
  2. The importer of goods
  3. The domestic exporter
  4. The central bank
Show answer and solution

Correct answer: B. The importer of goods

The duty is collected from the importer when the goods enter the customs territory.

Open this question →

An export tax, when levied, is paid by whom?

  1. The importing government
  2. The foreign consumer
  3. The exporter of goods
  4. The shipping line
Show answer and solution

Correct answer: C. The exporter of goods

Export taxes fall on the exporter, unlike import tariffs which fall on the importer.

Open this question →

How to practise

  1. Choose a Business Economics question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

Put it into practice

Continue with Business Economics practice for CA Foundation. Read explanations as you go. No signup form needed to start.

Practise Business Economics →

More Business Economics topics

Price-Output Determination under Different Market FormsPublic FinanceSupplyLaw of DemandInternational TradeBasic Problems of an Economy and Role of Price MechanismProduction And CostBusiness Cycles