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WGU C211 - Competency 5 Exam Questions And Answers
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WGU C211 - Competency 5 ExamQuestions And Answers
Tariff. - - correct answer ✅Tax on goods produced abroad and
sold domestically(tax on imported goods). A method used to
restrict international trade.
Dead weight loss. - - correct answer ✅The fall in total surplus
that results from a market distortion, such as a tax (new
equilibrium price that is settled for the transaction will be
higher and therefore some burden of this will be passed on to
the consumer)
How are tariff's and dead weight loss related? Explain. - -
correct answer ✅A tariff causes a deadweight loss because a
tariff is a type of tax. Like most taxes, it distorts incentives and
pushes the allocation of scarce resources away from the
optimum. (Oversupply and under demand)
Two primary categories of trade barriers - - correct answer
✅Tariffs and Non-Tariff
If an import tariff is imposed on coconuts that are imported into
the U.S., how will this impact the price of coconuts for U.S.
consumers? - - correct answer ✅Increase the price.
, WGU C211 - Competency 5 Exam
Questions And Answers
Why might a government be interested in imposing an import
tariff on a good? What benefit would the government derive
primarily? - - correct answer ✅The tariff will reduce the
amount of importans, increase the amount of exports. The
primary benefit is that it raises revenue for the government.
How would imposing an import tariff on cigars impact the
domestic production of cigars? - - correct answer ✅Quantity
increases for exporting at world price.
If an import tariff on coconuts was removed in the U.S., how
would this impact the demand for coconuts by U.S. consumers?
- - correct answer ✅The demand would increase.
What would happen to the overall domestic demand for a good
if an import tariff were imposed on that good? - - correct
answer ✅It would increase.
How does a tariff generally impact the following entities:
consumers, producers, government? Compare the effects
between the entities - - correct answer ✅Domestic sellers are
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