Question

A revenue tariff is designed to assist more efficient domestic producers, whereas a protective tariff is designed to promote imports.

Question 13 options:
True
False

Answer 1

Answer:

False

Explanation:

Revenue tariff means increasing earnings. It will raise government revenue instead of protecting domestic ventures. It is a direct income in the form of tax to obtain from corporate revenues.

On the other hand, protective tariffs are designed to protect domestic producers. It protects local manufacturers by imposing a heavy duty on imported products, which enables the products to become less attractive. Therefore, the aim is to reduce imports.

Answer 2

Answer:

False

Explanation:

A revenue tariff is a tax imposed on goods and services to raise revenue for the government. The tariff is levied on imports as a percentage of the value of imported goods. Other taxes imposed by governments for purposes of collecting revenue may also be referred to as revenue tariff.

A protective tariff is a tax imposed on imports to protect domestic industries from unfair competition from imports. The tax makes imports expensive and in the domestic markets.

A protective tariff purpose is to discourage imports.