Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Decrease in domestic prices
B
Increase in domestic production
C
Increase in consumer choice
D
Decrease in government revenue
Understanding the Answer
Let's break down why this is correct
Answer
The primary effect of imposing tariffs on imported goods is that it raises the price of those goods for consumers in the domestic market. When a government places a tariff, it adds a tax to imported items, making them more expensive than local products. This can lead consumers to buy more domestically produced goods, which may help local businesses grow. For example, if a country imposes a tariff on imported cars, people might choose to buy cars made in their own country instead, which can support local car manufacturers. However, it can also mean that consumers have fewer choices and may pay higher prices overall.
Detailed Explanation
When tariffs are added, it makes imported goods more expensive. Other options are incorrect because Some might think tariffs lower prices, but they actually raise costs; People may believe tariffs increase choices, but they limit options.
Key Concepts
Import
Topic
Effects of Tariffs on Markets
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.