Unlike nontariff barriers, tariffs _____.
A) decrease the cost of exported goods
B) increase the cost of imported goods
C) are direct taxes on imported goods
D) are nontax methods of reducing the volume of imported goods

Question

Quizplus · Accepted Answer

Tariffs are direct taxes on imported goods, while nontariff barriers are other methods of reducing the volume of imported goods that are not taxes. Option A is incorrect because tariffs increase the cost of imported goods, not decrease the cost of exported goods. Option B is correct as it correctly identifies that tariffs increase the cost of imported goods. Option D is incorrect because tariffs are not nontax methods of reducing the volume of imported goods.

Unlike Nontariff Barriers, Tariffs _____