Jarrod is looking for a pickup truck for his small US-based business. He wants to buy a truck made in another country. When he goes to the dealership, he discovers that the price of the foreign-made truck is higher than US-made trucks. When he asks the salesperson about the higher price, the salesperson replies that it is because of a US tariff placed on foreign-made trucks.
Answer
A
It makes shipping trucks to the United States more expensive.
B
It is added to the price of foreign-made trucks sold in the US.
C
It increases the cost of building trucks for the US market.
D
It is added to the price of all trucks sold in the United States.
Explanation
A tariff is a tax on goods imported into a country. The cost of the tariff is typically passed along in the price of foreign-made trucks sold in the United States, making them more expensive. It does not apply to all trucks sold in the United States, so choice D is incorrect.
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