How to find tariffs
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AP Macroeconomics › How to find tariffs
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1
Tariffs are used for all of the following EXCEPT __________.
creating a more free and open market for the good being taxed
CORRECT
protecting domestic businesses
raising revenue on imports
decreasing the total amount of goods imported
restricting trade from foreign producers
Explanation
A tariff, also known as a "border tax", is a tax placed only on specific goods being imported into a country. A tariff can be used to restrict foreign imports, harm foreign producers in some way, protect domestic businesses, or raise additional revenue. What a tariff never does is open markets and promote absolute free trade.