Tariffs tend to reduce the volume of imports by
A)Setting maximum allowable import limits.
B)Placing severe quality restrictions on imported goods.
C)Making them more expensive to domestic consumers.
D)Reducing prices of domestically produced goods.

Question

Quizplus · Accepted Answer

Tariffs increase the price of imported goods, making them more expensive for domestic consumers, which reduces the demand for imported goods and therefore reduces the volume of imports. Setting maximum allowable import limits (A) or placing severe quality restrictions on imported goods (B) would be considered non-tariff barriers, while reducing prices of domestically produced goods (D) is not related to tariffs.

Tariffs Tend to Reduce the Volume of Imports by