Lesser-known facts about customs duties! Learn how international trade works through a quiz.

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My name is Moko, a mother of three who admired my mother and worked in the care industry as a care worker and as a medical social worker (MSW) in a hospital. I will be drawing on my previous experience to write mainly about caregiving. Thank you in advance.

Even if you’ve heard the word “tariff,” you might actually not know much about how it works or how influential it is.

The world of tariffs—central to trade policy and capable of swaying the global economy—hides plenty of surprising facts and intriguing tidbits.

From basic quizzes on types of tariffs and why they’re imposed to topics like the history of tariffs—everything you want to know right now! We’ve collected trivia and fun facts in a quiz format.

Let’s enjoyably build our literacy about money and the economy!

Little-Known Facts About Customs Duties! Learn How International Trade Works Through a Quiz (11–20)

It is said that there exists a tariff rate that maximizes the impact on a country’s economy. Imposing this tariff rate yields the greatest overall domestic welfare. What is this type of tariff called?

Optimal tariff
average tariff
retaliatory tariffs

See the answer

Optimal tariff

The correct answer is “optimal tariff.” An optimal tariff is the tariff rate that maximizes the welfare of the country imposing it, and in economics it is theoretically derived within one-country or two-country models. However, in practice, one must consider retaliation from other countries and international relations, so imposing the optimal tariff is not necessarily the best course of action.

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