AP Macroeconomics : How to find tariffs

Study concepts, example questions & explanations for AP Macroeconomics

varsity tutors app store varsity tutors android store

Example Questions

Example Question #1 : Other Tariffs

Tariffs are used for all of the following EXCEPT __________.

Possible Answers:

creating a more free and open market for the good being taxed

restricting trade from foreign producers

decreasing the total amount of goods imported

raising revenue on imports

protecting domestic businesses

Correct answer:

creating a more free and open market for the good being taxed

Explanation:

A tariff, also known as a "border tax", is a tax placed only on specific goods being imported into a country. A tariff can be used to restrict foreign imports, harm foreign producers in some way, protect domestic businesses, or raise additional revenue. What a tariff never does is open markets and promote absolute free trade.

Learning Tools by Varsity Tutors

Incompatible Browser

Please upgrade or download one of the following browsers to use Instant Tutoring: