How to find tariffs

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AP Macroeconomics › How to find tariffs

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1

Tariffs are used for all of the following EXCEPT __________.

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

protecting domestic businesses

raising revenue on imports

decreasing the total amount of goods imported

restricting trade from foreign producers

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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