Question

Which of the following will not be a consequence of an import tariff?

A. An increase in the price of the product in the domestic market
B. Reduced competitive pressure by foreign firms on the domestic producers
C. Increased level of supply in the domestic market
D. None of the above is correct.

Answer 1

B. Reduced competitive pressure by foreign firms on the domestic producers

Explanation:

An import tariff is a protectionist measure that enables domestic producers to keep a major share of the national market and lower the competition with imports.