ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Tariffs are duties on imports imposed by governments to raise revenue, protect domestic industries, or exert political leverage over another country. Tariffs often result in unwanted side effects, such as higher consumer prices.

Detailed explanation-2: -Explanation-Per unit tariff refers to the tax that is imposed on each unit of services and goods that are imported into a nation. (1) As per unit tariffs are taxes that the government levies on imported goods, the revenue generated from these taxes increases the tariff revenue of the government.

Detailed explanation-3: -What Is a Tariff? Tariffs are taxes imposed by one country on goods or services imported from another country. Tariffs are trade barriers that raise prices and reduce available quantities of goods and services for U.S. businesses and consumers.

Detailed explanation-4: -Protective Tariff Examples For example, if a Japan-made wheelbarrow costs $50 in the US, and a locally produced wheelbarrow is also priced the same, protective tariffs are implemented on the imported Japanese wheelbarrows to force a price increase.