A governament tax on goods or sevices entering a country primarly serving to rai
ID: 442299 • Letter: A
Question
A governament tax on goods or sevices entering a country primarly serving to raise prices on imports is a: Tariff Quota Excise tax Levy The primary use of tariffs In the first 130-140 years of America's history was to: Protect our agricultural and manufacturing industries Provide the U.S. government its primary source of revenue Neither a nor b Both a and b Are tariffs always a bad things: No, if used responsibly in partnership between government and business to givee a new industry a start without being exploitable of labor and other resources. Yes, usually it is. Yes, always - it starts retaliatory tanffs and/or quotas from other countries that have neg on our producers. Free trade should be allowed to run its course from the start of an tndi its life-cycle None of the above.Explanation / Answer
Answer to first part.
Primarily all the four taxes increase the prices of imported goods in one form or the another since all of them are indirect taxes and indirect taxes increase the prices of goods and services sold to the population. However, tariffs are specifically levied to restrict trade and increase the prices of imported goods.
Answer to second part.
Tariffs, since ancient times have always been used to either protect native industries or restrict unwanted foreign trade. Its second advantage is that tariffs are a very effective tool when it comes to earning revenue. Most modern economies employ tariffs to earn sizeable revenues. In fact, tariffs are the source of revenue for most countries, including USA.
Answer to third part.
It cannot always be said that tariffs are a bad concept. Its an economic tool that has always been used to earn revenues and at times of emergencies, protect native industries. The US still uses it to protect its businesses in light of rising Chinese, European and its long time Japanese trading partners.