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Bookmarks People WindowHelp Aplia: Student Questionx m/af/servlet/quiz?quiz action-takeQuiz&quiz_probGuid-QNAPCOA80101000000433cd8e0070000 Reviews Tariffs Graded Assignment | Read Chapter 41Back to Assignment Due Sunday 09.23.18 at 11:00 PM Attempts: Keep the Highest:/6 4. Tariff effects: An overview Consider two hypothetical countries, Borzia and Ardon. Both countries produce iWidgets, and the price of iWidgetsis lower in Borzia than in Ardon. If Borzia and Ardon open to trade, producers in lobby their government for an import tariff on iWidgets in order to protect themselves from foreign competition. would be more likely to Which of the following statements about the effects of the ta apply riff compared to free trade are correct? Check all that in Ardon, The tariff need not reduce the price differential between Borzia and Ardon. The extra cost of Widgets gets passed on to products and services using some workers at retail and shipping companies that import Widgets lose their jobs. iWidgets in the production process As a result of the tariff, the price of the imported iWidget always rises above its domestic price. O The taniff benefits producers in Ardon. NA 3 1 2004-2036 a All rights reserved 2013 Cengege eag except as noted. All rights reserved Continue without saving Copyright NoticesTerms of Use vacy Notice Security Not

Explanation / Answer

4) Producers in Ardon would be more likely to lobby their government for an import tariff on widgets in order to protect themselves from foreign competition.

Explanation : - Due to lower price on imported widget, the demand for domestic widget will fall as consumers would like to buy widget at low price. This will affect domestic producers of widget and they will most likely lobby with the government to impose tariff on imported widget to reduce the price gap between domestic and imported widget.

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The correct choices are : -

Explanation :- The cost of the tariff will be added on to the price of the imported widget and therefore the imported widget price will be high. Also the high price of imported widget will benefit the producers in Ardon as consuumes will prefer domestic widget when imported widget costs high.

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