The main purpose of most tariffs and quotas is to
A)raise revenue for the government.
B)reduce the prices consumers pay for goods and services.
C)reduce the foreign competition that domestic firms face.
D)improve the quality of goods and services imported into the country.

Question

Quizplus · Accepted Answer

Tariffs and quotas are trade policies that are put in place to protect domestic industries by reducing foreign competition. Tariffs are taxes on a particular category of imported goods, while quotas limit the amount of goods that can be imported into a country. Both these measures are designed to make imported goods more expensive, giving domestic producers a price advantage over foreign producers. The intention is to encourage consumers to buy domestic products instead of imported ones, which helps protect domestic industries from foreign competition, and provides revenue for the government through tariff collection.

The Main Purpose of Most Tariffs and Quotas Is to