Asked by Daniel Klucker on Jun 07, 2024

verifed

Verified

The introduction of a tariff will be expected to

A) reduce imports.
B) increase the prices of exports but have no effect on the level of imports.
C) reduce the prices of exports but have no effect on the level of imports.
D) increase exports.
E) increase imports.

Tariff

A tax imposed by a government on goods and services imported from other countries, to regulate trade and protect domestic industries.

  • Evaluate the consequences of tariffs, quotas, and additional trade barriers on international trade and domestic economies.
verifed

Verified Answer

RT
Ramez TolaymatJun 11, 2024
Final Answer :
A
Explanation :
The purpose of a tariff is to make imports more expensive, thus making domestically produced goods more appealing. By increasing the cost of imports, it is expected that imports will decrease as consumers look for cheaper alternatives domestically. Therefore, choice A is the correct answer.