Tariffs are __________ by governments to make domestically produced goods more attractive and to raise revenue.*1 pointliftedputimposed
Question
Tariffs are __________ by governments to make domestically produced goods more attractive and to raise revenue.
1 point
lifted
put
imposed
Solution
The correct answer is imposed.
Tariffs are taxes or duties placed by governments on imported goods. The primary purpose of imposing tariffs is to make domestically produced goods more competitive against foreign products by increasing the price of imported goods. This can encourage consumers to buy local products, thereby supporting domestic industries and potentially leading to job creation within the home country. Additionally, tariffs serve as a source of revenue for governments, contributing to the national budget. By increasing the cost of imports, governments can control the trade balance and protect local economies from foreign competition. Overall, tariffs are a significant tool in international trade policy, used strategically by governments to influence economic outcomes.
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