Asked in PPSC, FPSC and other one-paper exams (compiled from unofficial resources).
Economy & DevelopmentIndustry & Trade
A tariff:
- A.Increases the volume of trade
- B.Has no effect on the volume of trade
- C.Reduces the volume of tradeCorrect answer
- D.Eliminates all trade
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Practice these MCQs in the appQuick fact: A tariff reduces the volume of trade by making imported goods more expensive, thereby discouraging imports.