CUET Preparation Today
Which of the following statement is NOT correct in the context of "tariffs"? |
A tariff is a tax on imports, which can be levied either on physical units, e.g. per tonne (specific) or on value. It can be imposed to protect domestic industry from subsidised or low-wage imports. It can be imposed to ease a deficit on the balance of payments They reduce the volume of trade and increase the price of the exported commodity to consumers. |
They reduce the volume of trade and increase the price of the exported commodity to consumers. |
Tariff : A tax on imports, which can be levied either on physical units, e.g. per tonne (specific) or on value. Tariffs may be imposed for a variety of reasons including: to raise government revenue, to protect domestic industry from subsidised or low-wage imports, to boost domestic employment, or to ease a deficit on the balance of payments. Apart from the revenue that they raise, tariffs achieve little good—they reduce the volume of trade and increase the price of the imported commodity to consumers. |
