Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increase in domestic production
B
Decrease in government revenue
C
Increase in consumer prices
D
Decrease in employment rates
Understanding the Answer
Let's break down why this is correct
Answer
One primary effect of imposing tariffs on imported goods is that it makes those goods more expensive for consumers. When a government places a tariff, which is a tax on imports, the price of the foreign products increases. This can lead consumers to buy less of those imported items and instead choose to buy domestically produced goods, which might be cheaper. For example, if a country imposes a tariff on imported cars, people may decide to buy cars made in their own country instead. This can help local businesses but might also mean fewer choices and higher prices for consumers.
Detailed Explanation
When tariffs are added to imported goods, it makes those goods more expensive. Other options are incorrect because Some might think tariffs lower government income; It might seem that tariffs would lower prices.
Key Concepts
tariffs
Topic
Effects of Tariffs on Trade
Difficulty
easy level question
Cognitive Level
understand
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