AP Macroeconomics : How to find tariffs
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Example Questions
Example Question #1 : Tariffs
Tariffs are used for all of the following EXCEPT __________.
Possible Answers:
raising revenue on imports
restricting trade from foreign producers
creating a more free and open market for the good being taxed
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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