Which of the following works to limit trade by explicitly raising prices (i.e. as a tax)?

Question

Quizplus · Accepted Answer

Tariffs are taxes that are imposed on imported goods by the government of the importing country. By increasing the cost of the imported goods, tariffs make the products less attractive to consumers and thereby limit trade. This is because importers are forced to pay a higher price for the imported goods, which they may pass on to their customers in the form of higher prices. This, in turn, reduces demand for the imported goods and increases demand for domestic products, which benefit from a competitive advantage. Therefore, tariffs work to limit trade by increasing the cost of imported goods.

Which of the Following Works to Limit Trade by Explicitly