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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