Responding to pressure from political lobbyists representing the U.S. steel industry, the U.S. government levies a tax on steel products imported from Europe. This is an example of a(n):
A) protective tariff.
B) revenue tariff.
C) quota.
D) embargo.

Question

Quizplus · Accepted Answer

This is an example of a protective tariff, which is a tax imposed on imported goods to protect domestic industries from foreign competition. The U.S. steel industry is pressuring the government to take measures to protect its interests, and a protective tariff on steel imported from Europe is one way of achieving this. A revenue tariff is a tax imposed on imports primarily to generate revenue for the government, while a quota limits the quantity of goods that can be imported. An embargo is a complete ban on trade between countries.

Responding to Pressure from Political Lobbyists Representing the U