Asked by Ambrianna Jones on May 08, 2024
Verified
Which of the following would NOT be an impact of tariffs imposed on foreign cars?
A) Sales of foreign cars decline
B) The prices received by foreign car manufacturers decline
C) American jobs are protected
D) Tax revenue is generated for the government
E) Domestic car prices decline
Tariffs
Taxes imposed by a government on imported goods, often used to protect domestic industries and regulate trade balances.
- Investigate the influence of tariffs, quotas, and other forms of trade barriers on global commerce and internal market dynamics.
- Understand the economic principles underlying the enactment and effects of tariffs and quotas.
Verified Answer
LL
lai ling leungMay 09, 2024
Final Answer :
E
Explanation :
Tariffs on foreign cars make them more expensive, which can lead to a decrease in their sales and the prices received by foreign manufacturers. They can protect American jobs by making domestic cars more competitive and generate tax revenue. However, they would not cause domestic car prices to decline; instead, they might increase due to reduced competition.
Learning Objectives
- Investigate the influence of tariffs, quotas, and other forms of trade barriers on global commerce and internal market dynamics.
- Understand the economic principles underlying the enactment and effects of tariffs and quotas.