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:
creating a more free and open market for the good being taxed
raising revenue on imports
restricting trade from foreign producers
protecting domestic businesses
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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