Tariffs

Question

Tariffs

Quizplus · Accepted Answer

Tariffs were the primary source of federal government revenue in the 1800s, before the implementation of the income tax. While tariffs still generate revenue for the government today, they are not the primary source. Furthermore, tariffs do not completely prevent international trade from occurring, but rather add a tax to imported goods, making them more expensive and potentially less competitive with domestically produced items. Finally, quotas (limiting the amount of imports allowed) are used less often than tariffs to regulate international trade.