Question

Which of these increases the price of certain foreign-made goods?

Question 7 options:


an import tariff


an excise tax


a sales tax


an income tax

Answer 1

An import tariff would increase the price of certain foreign-made goods.

Answer 2

Answer:

An import tariff

Explanation:

Literally, import tariffs (or customs duties) are taxed paid on imports of goods and/or services. Import tariffs is a kind of tax pressed on import of goods and services from foreign nation in order to shoot up the price of the imported goods. The import tariffs are imposed by the government for some of the reasons listed below:

1. To make imports less desirable and to minimize the reliance on foreign products
2. To shield newly domestic set ups from foreign competition and also to shield the aging and inefficient ones from foreign competition.

The bold "shoot up the price of the imported goods" means to increase the price of imported goods describes one of the reasons of an import tariff.

Hence, we can conclude that an import tariff increased the price of certain foreign-made goods.