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

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, and therefore, generate revenue for the government. The revenue generated is often used to fund government initiatives or to reduce budget deficits. It is important to note that while tariffs may provide protection for domestic producers, they can also result in higher prices for consumers and can encourage retaliation from other countries through their own tariffs on exported goods.