Question

Which one of the following statements about protective tariffs is correct?

A. Protective tariffs are excise taxes or duties placed on imported products.
B. Protective tariffs are government payments to domestic producers to reduce the world prices of exported goods.
C. Protective tariffs are maximum limits on the quantity or total value of specific products imported to a nation.
D. Protective tariffs are licensing requirements, unreasonable quality standards, and the like designed to impede imports.

Answer 1

The correct answer is: Because tariffs are designed to protect domestic goods. These tariffs are placed on an imported good or service by the federal government to make manufactured domestic goods cheaper for domestic consumers than the imported ones. This is made to protect the national and new industries against foreing competition.

Step-by-step explanation:

Answer 2

The answer is (B):
- Protective tariffs are government payments to domestic producers to reduce the world prices of exported goods.