Given below are two statements. Assertion A: If governments do not care about protectionists' rents, they would replace all import duties with sales taxes. Reason R: Sales tax is a more efficient means of raising revenue than an import tariff. In the light of the above statements, choose the correct answer:
Tap an option to check your answer.
Checking your account…
Trade policy: tariffs, quotas and protection has come up 63 times in 6 exams since 2010.
This question is on Tariffs: welfare effects, optimum tariff and incidence, part of Trade policy: tariffs, quotas and protection in International Economics.
What a tariff does to prices, output, revenue and welfare in small and large countries.
TestStop has 24 past-paper questions on this subtopic.
Question from the UGC-NET 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.