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.

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A protective tariff is designed to protect domestic industries from foreign competition by making it more expensive for foreign goods to enter the market, thereby giving domestic businesses an advantage. In this scenario, Eurica is trying to protect its domestic auto industry by placing a 25 percent tariff on imported cars. This makes the imported cars more expensive for consumers, which makes domestic cars more attractive and helps protect jobs in the domestic auto industry.

The Hypothetical Country of Eurica Is Experiencing Severe Competition to Its