Question 6

Policy makers in the domestic Shirt industry have requested that the government place a $2.00 per item Tariff on imported Shirts. Describe and explain the winners and losers from this action. A diagram would assist your answer here and attract further marks. (5 Marks with diagram or 2 marks without a diagram)

In general why would Governments place Tariffs on any items? What could be the impact of such Tariff actions by Governments? (2 Marks)

How might a Tariff on a large volume high value imported item affect the supply and demand for Australian dollars? A diagram would assist your answer here and attract further marks. (3 Marks with diagram or 2 without a diagram)