The country of Velvita is experiencing severe competition to its domestic auto industry in the form of foreign imports.Many jobs are threatened.Velvita places a 25 percent tariff on the price of imported cars.This type of tariff is known as a(n)_____ tariff.
A)revenue
B)quota
C)infant industry
D)protective

Question

Quizplus · Accepted Answer

This type of tariff is known as a protective tariff because its primary purpose is to protect the domestic industry from foreign competition by making imported goods more expensive, thereby encouraging consumers to buy domestic products.

The Country of Velvita Is Experiencing Severe Competition to Its