Which of the following statements concerning tariffs is not true?

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which increases the price of imported goods and therefore makes them less competitive with domestically produced goods. As a result, a tariff decreases international trade and increases domestic production, therefore increasing domestic employment. A tariff also creates revenue for the government by collecting taxes on imported goods. However, a tariff does not leave the price of imports unchanged – it increases the price of imports.

Which of the Following Statements Concerning Tariffs Is Not True