What is the primary purpose of a protective tariff?
A) to allow more expensive domestic goods to compete with foreign ones
B) to completely ban certain goods from entering a country
C) to limit the number of products in a certain category from entering a country
D) to standardize the number of items that can be brought into a country duty free
E) to makeup for variances in currency exchange rates.

Question

Quizplus · Accepted Answer

Import tariffs are commonly imposed to protect domestic products by raising the price of imported ones. Protective tariffs allow more expensive domestic goods to compete with foreign ones. Such protective tariffs have become controversial, as Americans become increasingly concerned over the U.S. trade deficit.

What Is the Primary Purpose of a Protective Tariff