Which of the following is a possible reason for a country to impose a tariff?
A) A tariff discourages domestic production.
B) A tariff reduces the benefits for domestic producers.
C) A tariff is a source of revenue for the government.
D) A tariff will encourage domestic consumers to buy foreign goods.

Question

Quizplus · Accepted Answer

A tariff can be imposed as a source of revenue for the government. When a tariff is imposed, the importer has to pay the tax to the government, and this tax can be a considerable source of revenue for the country.

Which of the Following Is a Possible Reason for a Country