2
QuizMultiple Choice

World Economics

Question 2 • T1 - 4 RMA-TX-Financial Math-B

How do tariffs on imports affect a country’s balance of trade?

Answer
A
Tariffs raise government revenue.
B
Tariffs ensure that all countries are traded with equally.
C
Tariffs reduce the amount of imports a country makes.
D
Tariffs increase the amount of money a country makes from imports.

Explanation

A tariff is a tax on imported goods, which usually makes them more expensive for buyers. As a result, people and businesses may buy fewer imported goods, reducing the amount of imports the country makes. So the correct choice is “Tariffs reduce the amount of imports a country makes.”

AI-written and checked against the verified answer.

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