The introduction of tariffs and quotas
ECONOMICS
WAEC 2013
The introduction of tariffs and quotas
- A. reduce th prices of imports
- B. increase the demand for locally made goods
- C. discourage domestic industries from becoming more efficient
- D. reduce the prices of locally made goods
Correct Answer: B. increase the demand for locally made goods
Explanation
One of the main reasons for the introduction of tariffs and quotas is to support local industries and discourage imports. When goods are imported at a high cost, they would be exchanged for high prices as well. With this, local industries can easily sell locally produced goods are cheaper rates thereby increasing the market and demand for it.
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