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Industry & Trade, 1950–90 · Question 41 of 53

Question 41

HardOriginal question

An imported machine costs ₹4,00,000 before duty, and a buyer pays ₹5,00,000 for it in India. What is the rate of tariff?

Options for question 41

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. Tariff = 5,00,000 − 4,00,000 = ₹1,00,000.

  2. Rate = 1,00,000 ÷ 4,00,000 × 100 = 25%.

Worth noting

20% divides by the price after duty; a tariff rate is on the price before it.

Concept
Tariffs
Typical time
100 s
Your time
—
The rule this testsImport substitution, tariffs and quotas
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Ten questions from Industry & Trade, 1950–90, at your own pace.

Practise this chapter →

Ten questions from Industry & Trade, 1950–90, at your own pace.

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