HSC Economics Practice Exam

The correct answer indicates that approximately 50% of imports into Australia are tariff-free. This reflects Australia's trade policies, which have been designed to promote free trade and minimize barriers to imports. By having a significant proportion of imports that are not subject to tariffs, Australia enables a more competitive market environment, which can lead to lower prices for consumers and greater variety in available goods.

The percentage represents the effectiveness of Australia's trade agreements and policies aimed at fostering global trade relationships. Tariff-free imports can result from various trade agreements, such as free trade agreements with specific countries or regions, which enable goods to enter the Australian market without additional tariff burdens.

This decision to keep a substantial percentage of imports tariff-free is part of Australia's broader economic strategy to stimulate growth, enhance consumer choice, and maintain competitive pricing in the market.