Question 81
Foreign TradeWhich of the following is not a reason for imposing a tariff? To
- A.correct an adverse balance of payments
- B.raise revenue for the government
- C.encourage imports
- D.protect infant industries
- E.encourage the consumption of home-produced goods
Show the answer and explanation
Answer: C (encourage imports)
Explanation
A tariff makes imports dearer, so it discourages imports.