3
QuizMultiple Choice

Fiscal Policy: Taxes

Question 3 • * HSA 26-27 Economics

Which of these is most likely the US government’s aim in taxing imported goods?

Answer
A
to protect domestic businesses
B
to decrease international trade
C
to end reliance on foreign goods
D
to make US markets less desirable

Explanation

A tax on imported goods is called a tariff. Tariffs make foreign products more expensive, which can help domestic businesses compete with them. The most likely aim is therefore to protect domestic businesses; tariffs may reduce some imports, but they do not necessarily end reliance on foreign goods or make US markets less desirable.

AI-written and checked against the verified answer.

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