7
lesson pretestMultiple Choice

Pretest

Question 7 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

Often duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

Answer
A
positive incentive and subsidy.
B
negative incentive and tariff.
C
positive incentive and tariff.
D
negative incentive and subsidy.

Explanation

Duties and taxes make imported cars more expensive, discouraging people from buying them, so they are a negative incentive. A tax placed on imported goods is called a tariff. Therefore, the correct choice is “negative incentive and tariff.”

AI-written and checked against the verified answer.

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