The hypothetical country of Eurica is experiencing severe competition to its domestic auto
Industry in the form of foreign imports.Many jobs are threatened.Eurica places a 25 percent tariff on the price of imported cars.This type of tariff is known as a(n)________ tariff.

Question

Quizplus · Accepted Answer

A protective tariff is designed to protect domestic industries from foreign competition by making their products more expensive compared to imported products. In this case, Eurica is placing a 25 percent tariff on imported cars to protect its domestic auto industry.

The Hypothetical Country of Eurica Is Experiencing Severe Competition to Its