11
QuizMultiple Choice

Unit Test — Unit test

Question 11 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

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 subsidy.
C
positive incentive and tariff.
D
negative incentive and tariff.

Explanation

Import duties and taxes on cars from other countries are tariffs. They raise the cost of imported cars, discouraging people from buying them, so they are a negative incentive. Therefore, the correct choice is “negative incentive and tariff.”

AI-written and checked against the verified answer.

Previous
Next