Tariffs
A) generate revenue for the government.
B) encourage domestic producers to produce less.
C) generate revenue for consumers.
D) encourage domestic consumers to buy more imports.

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, which generate revenue for the government by increasing the cost of those goods. They do not generate revenue for consumers or encourage domestic producers to produce less. Instead, they make imported goods more expensive, which can discourage domestic consumers from buying imports and encourage them to buy domestically produced goods instead.