JACKSONIAN DEMOCRACY 1825 1850
AGE OF THE COMMON MAN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tariffs make imported goods more expensive, so consumers are more likely to buy American products.
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Tariffs make domestic goods more expensive, so consumers are more likely to buy foreign products.
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Tariffs raise tax money for the federal government.
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Tariffs prevent free trade and make American businesses lose profits.
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Detailed explanation-1: -Who benefits from a tariff? The importing countries usually benefit from a tariff, as they are the ones imposing the tariff and collecting the revenue. Domestic businesses also benefit from tariffs because it makes their goods cheaper than imported goods, hence driving up the demand for their products.
Detailed explanation-2: -The primary benefit is that tariffs produce revenue on goods and services brought into the country. Tariffs can also serve as an opening point for negotiations between two countries. The GATT, WTO, and other trade agreements use regulation of tariffs as a way to bring nations together to determine economic policy.
Detailed explanation-3: -Tariffs are used to restrict imports. Simply put, they increase the price of goods and services purchased from another country, making them less attractive to domestic consumers. Governments impose tariffs to raise revenue, protect domestic industries, or exert political leverage over another country.
Detailed explanation-4: -A tariff is a tax levied on an imported good with the intent to limit the volume of foreign imports, protect domestic employment, reduce competition among domestic industries, and increase government revenue.