Lowering the tariff on good X

Question

Quizplus · Accepted Answer

Lowering the tariff on good X will make it cheaper for domestic consumers to import good X, thereby increasing the domestic imports of good X. This will not necessarily result in increased employment or government revenue, and may not affect the domestic price of good X unless competition leads to a price decrease. However, if the nation's trading partners also lower their tariffs on good X, this could lead to increased exports of other goods in exchange, benefiting the domestic economy.

Lowering the Tariff on Good X