The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good.

Question

Quizplus · Accepted Answer

Tariffs are taxes on imported goods. When a tariff is imposed, it generally increases government revenue from the taxes collected on imports. Additionally, by making imported goods more expensive, tariffs can make domestically produced goods more competitive in price, potentially increasing domestic production.

The Imposition of a Tariff Will Typically ________ Government Revenue