Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
NAEP released item, Grade 12 Scoring Guide
Score & Description
Correct
The response gives two reasons from the list below.
Partially Correct
The response gives one reason from the list below.
Incorrect
No appropriate response.
Credited responses could include
(a) Tariffs might be used to protect a developing nation’s new or fragile industry or to improve domestic
production of a product.
(b) Tariffs might be used as a means of diversifying a developing nation’s economy by limiting
competition from imports.
(c) Tariffs might be used as a means of protecting national security.
(d) Tariffs might be used to protect domestic employment in a specific industry,
(e) Tariffs might be used as a revenue source.
(f) Tariffs might be used to discourage consumption of goods from certain countries or to discourage
harmful or undesirable goods (e.g., cigarettes).
(g) Tariffs might be used to counter tariffs from other countries (retaliatory).
(h) Tariffs might be used to prevent outsourcing jobs in a certain industry or business.
(i) Tariffs might be imposed because they are supported by domestic groups with the ability to influence
political decision making.
(j) Tariffs might be imposed because certain organized groups are willing to spend money to promote
them.
(k) Tariffs might be imposed because the economic costs are typically spread over a large number of
people, each of whom pays only a little and may not recognize the cost.
(l) Tariffs might be imposed to make the country self-reliant on the product.
(m) Tariffs might be imposed to exert political pressure on a country.
(n) "To protect a business or a product that the government wants to produce within the country" is
acceptable but it must be “a product” or “a business” and not plural (products/businesses).
Not Acceptable
The following are not acceptable as stand-alone reasons:
“To increase market price”
“To increase the economy”
“To regulate imports”
NAEP released item, Grade 12 Correct - Student Response
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
NAEP released item, Grade 12 Partially Correct - Student Response
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
NAEP released item, Grade 12 Incorrect - Student Response
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
Give two reasons why a government might impose a tariff on an imported
product even though the economic costs of the tariff to the domestic economy
are greater than its economic benefits.
1)
2)
NAEP released item, Grade 12 2006 National Performance Results
Score
Percentage of Students
Incorrect
47%
Partially Correct
Correct
27%
3%
Omitted
Off task
20%
3%
Note:


These results are for public and nonpublic school students.
Percentages may not add to 100 due to rounding.
Content Area
The International Economy
Content area includes



the reasons for individuals and businesses to specialize and trade;
the rationale for specialization and trade across international borders; and
the comparison of the benefits and costs of that specialization and resulting trade for
consumers, producers, and governments.
Economically literate grade 12 students are able to explain how voluntary exchange, whether in a
domestic or an international market, is undertaken because both parties in the exchange expect to
benefit. Students can explain how they benefit themselves and others by developing special skills and
strengths. They are able to negotiate exchanges and identify the gains to themselves and others.
Economically literate students can also
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compare the benefits and costs of policies that alter trade barriers between nations, such as
tariffs and quotas;
identify who bears those costs and who receives the benefits;
explain why exchange rates change and can predict the effects of those changes on
themselves and others; and
explain how investment, technological change, education, and incentive structure contribute to
differences in economic growth and standards of living among countries.
NAEP released item, Grade 12 Cognitive Levels
Knowing
Measures students' abilities to identify and recall information and to recognize economic terms and
concepts. Questions in the Knowing category asked students to
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
recognize and recall information and concepts, and
interpret data and information to identify events or trends.
NAEP released item, Grade 12