Which effects are present when a tariff completely bans imports?

Tariffs MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Tariffseconomics-mcqs › tariffs
Published
28 May 2019
Last updated
28 May 2026

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Explanation

A tariff that fully restricts imports does not generate revenue but affects consumption by reducing imports and protects domestic producers from foreign competition, resulting in consumption and protection effects.

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