Tariffs are taxes imposed on imported goods which generate revenue for the government. They make foreign goods more expensive, giving domestic producers a price advantage and encouraging them to produce more. This can lead to domestic consumers buying fewer imports, but it does not necessarily lower prices for consumers.

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Tariffs

Question 50

Multiple Choice

Tariffs

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

Correct Answer: