Asked by Charles Griffey on May 06, 2024
Verified
In effect, tariffs on imports are
A) special taxes on domestic producers.
B) subsidies to domestic consumers.
C) subsidies to foreign producers.
D) subsidies for domestic producers.
Tariffs On Imports
Taxes imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.
Domestic Producers
Firms or individuals that manufacture or produce goods and services within a country's borders.
Subsidies
Financial assistance granted by the government to individuals, organizations, or industries to support business activities and encourage economic growth.
- Acknowledge the repercussions of tariffs on home and abroad producers and purchasers.
Verified Answer
KC
Kayrez CrawfordMay 10, 2024
Final Answer :
D
Explanation :
Tariffs on imports are taxes imposed by a government on goods entering the country from abroad. The result of such taxes is an increase in the price paid for foreign goods, which makes domestically produced goods more competitive. Therefore, tariffs act as a subsidy for domestic producers by providing them with protection from foreign competition.
Learning Objectives
- Acknowledge the repercussions of tariffs on home and abroad producers and purchasers.