The Purpose of Tariffs Is To

question 96

Multiple Choice

The purpose of tariffs is to:

• A) reduce imports by raising their selling prices compared with similar goods produced within the country.
• B) encourage competition between domestic and overseas producers.
• C) increase a variety of goods and services available locally.
• D) reduce government revenues.

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Definitions:

CESA

Coverdell Education Savings Account, a tax-advantaged investment account in the U.S. designed to encourage savings for education expenses.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Tax-Free

Income or financial transactions that are exempt from taxation by the government.

Contract Holder

An individual or entity that owns an agreement or policy, particularly in contexts like insurance or investments.