Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They decrease the price of imported goods.
B
They increase consumer choice.
C
They raise the price of imported goods.
D
They eliminate the demand for domestic products.
Understanding the Answer
Let's break down why this is correct
Answer
A primary effect of tariffs on imported goods is that they make those goods more expensive for consumers. When a government imposes a tariff, it adds a tax to the price of the imported items. This means that if a shirt costs $20 from another country and there is a $5 tariff, the price for consumers rises to $25. As a result, people may choose to buy similar products made locally, which can help domestic businesses. However, it can also lead to higher prices for consumers and fewer choices in the market.
Detailed Explanation
Tariffs are taxes on imported goods. Other options are incorrect because Some might think tariffs lower prices; It might seem that tariffs increase choices for consumers.
Key Concepts
trade barriers
Topic
Effects of Tariffs on Trade
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.