Women's bathing suits can be produced in foreign countries at a lower cost than in the U.S.When women's bathing suits are shipped into the U.S. ,their price is raised about 14% to allow the U.S.bathing suit industry to remain competitive.This is accomplished through a(n)_______
A)tariff
B)quota
C)embargo
D)subsidy

Question

Quizplus · Accepted Answer

A tariff is a tax imposed on imported goods and services. In this scenario, the 14% increase in the price of women's bathing suits imported into the U.S. is designed to make foreign-produced bathing suits more expensive, thereby allowing the U.S. bathing suit industry to remain competitive. This is a classic example of how tariffs are used to protect domestic industries from cheaper foreign competition.

Women's Bathing Suits Can Be Produced in Foreign Countries at a Lower