QUESTION IMAGE
Question
which best describes why governments enact tariffs?
○ to reduce the price of domestic products
○ to discourage consumers from purchasing foreign goods
○ to limit the sale of foreign goods
○ to ensure that domestic producers make a profit
Tariffs are taxes on imported goods. By imposing tariffs, the price of foreign goods increases, making them less attractive to consumers. This encourages consumers to buy domestic goods instead. The option "to reduce the price of domestic products" is incorrect as tariffs don't directly reduce domestic product prices. "To limit the sale of foreign goods" is less accurate as tariffs target consumer demand for foreign goods (discouraging purchase) rather than directly limiting sales. "To ensure that domestic producers make a profit" is incorrect as tariffs can help domestic producers compete but don't guarantee their profit.
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to discourage consumers from purchasing foreign goods