Question

A $100 specific tariff provides home producers more protection from foreign competition when

a. it is levied on manufactured goods rather than primary products.
b. the home demand for a good is elastic with respect to price changes.
c. it is applied to a commodity with many grade variations.
d. the home market buys cheaper products rather than expensive products.

Answer 1

D

Step-by-step explanation:

A $100 specific tariff provides home producers more protection from foreign competition when

the home market buys cheaper products rather than expensive products.

Special tariff are nothing but import tax expressed in an amount money per unit imported. Specific tariffs are trade barriers designed to reduce into the country.