AP Macroeconomics : How to find tariffs

Study concepts, example questions & explanations for AP Macroeconomics

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Example Questions

Example Question #1 : Other Tariffs

Tariffs are used for all of the following EXCEPT __________.

Possible Answers:

restricting trade from foreign producers

protecting domestic businesses

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

raising revenue on imports

decreasing the total amount of goods imported

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.

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