help wif a m/c ques plz! (1 Viewer)

[jimmik]

can sumone plz tell me the answer to this ques and more importantly explain y, i dont undastand y this is the answer:

Q: what is the likely effect of reduced tariff protection for an australian industry?

a) an increase in the price paid by domestic consumers
b) removal of the foreign product from the australian market
c) a short term increase in employment within the domestic industry
d) a decrease in domestic market share for australian firms

the answer is (d) but i dun see y it's that. plz help asap!!

 

[neo o]

..are you from ruse? we had exactly the same question in our half yearly heh.

As tarrif protection is reduced on foreign products, they become cheaper for domestic consumers. Australian industry had a disproportionate share of the market, because the tarrif made imported goods more expensive and thus Aussie goods were made more competitive. Now that protection is gone, Aussie products no longer have an advantage and so their market share will shrink.

 

[AGB]

exactly what neo_o said... basically the tariff increases the price of the imported good, thus they are less competitive on the domestic market, and when the tariff is reduced or removed, the price of the imported product decreases, thereby making it more appealing to consumers, which results in a decrease in market share for australian firms

 

[jimmik]

ahhh okay thanks. i was thinkin that they were talkin abt reducing tariffs on ausn goods so that the market share would increase but yeh silly me..need to read the ques properly haha.

err no im not from ruse..or should i say yeh of COURSE im *SO SMRT*. i mean smart. hehehe.

 

[jimmik]

ok wat abt dis ques:

in economics, which of the folowing would be regarded as investment?

a) the purchase of 100 000 shares in NAB Bank
b) the purchase of $1mill of CGS
c) siberian airways buying a boeing 747 passenger jet off Qantas
d) a pizza store buying a new gas oven.

im finkin it's (d) but not sure. can sumone double check on me?

 

[AGB]

yeh its d

 

[aditya]

lol thats yr 10 stuff man, if u dunt get that i think ur in a little trouble..

 

[jimmik]

Originally posted by aditya
lol thats yr 10 stuff man, if u dunt get that i think ur in a little trouble..

errr i didnt do economics in yr 10 cuz we didnt hav economics in yr 10.