9
QuizMultiple Choice

Trade Barriers — Quiz

Question 9 • Economics

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
negative incentive and subsidy.
D
positive incentive and tariff.

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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