30
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 30 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

Which best describes why governments enact tariffs?

Answer
A
to reduce the price of domestic products
B
to discourage consumers from purchasing foreign goods
C
to limit the sale of foreign goods
D
to ensure that domestic producers make a profit

Explanation

A tariff is a tax on imported goods, which usually makes them more expensive for consumers. Governments use tariffs to discourage people from buying foreign goods and to give domestic products a price advantage. Tariffs do not guarantee that domestic producers will make a profit.

AI-written and checked against the verified answer.

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