Tariffs: Walls Around Trade?

What is a tariff?

• A tax on goods exported from a country.

• A tax on goods imported into a country.

• A fee paid to cross a city border.

• Money earned by a business.

Answer explanation

A tariff is specifically a tax imposed on goods imported into a country, making the correct answer "A tax on goods imported into a country." This helps regulate trade and can protect domestic industries.

Which of the following is a reason a government might impose a tariff?

• To encourage more imports.

• To lower prices for consumers on all goods.

• To protect local industries from foreign competition.

• To make all goods cheaper.

Answer explanation

A government imposes tariffs primarily to protect local industries from foreign competition. This helps domestic businesses thrive by making imported goods more expensive, thus encouraging consumers to buy local products.

What is revenue?

• Revenue is the total number of employees in a company.
• Revenue is the total income generated from business activities.
• Revenue is the amount spent on marketing.
• Revenue is the total profit after expenses.

"China made 300,000 pairs of Jordan shoes and sent them to the United States for sale"

• Import

• Export

Which of the following is a potential negative effect of tariffs on consumers?

• More choices of goods.

• Lower prices for goods.

• Higher prices for goods.

• Increased domestic production.

Answer explanation

Tariffs can lead to higher prices for goods as they increase the cost of imported products. This reduces competition and can result in consumers paying more for the same items, making 'Higher prices for goods' the correct choice.

What can happen when one country imposes tariffs on another country's goods?

• Increased international cooperation.

• A decrease in prices for all goods.

• A trade war where both countries impose tariffs.

• More goods being traded between the countries.

Answer explanation

When one country imposes tariffs, it can lead to retaliation, resulting in a trade war where both countries increase tariffs on each other's goods, escalating tensions and reducing trade.

A tariff is like a ____________________ on the highway of international trade.

Answer explanation

A tariff acts like a toll booth on the highway of international trade, imposing a fee on goods crossing borders, similar to how a toll booth charges vehicles for using a road.

Apples grown in California and shipped to Australia.

• Import
• Export

___________ make goods from another country more expensive, while protecting American factories.

• checks and balances

• impressment

• ratification

• tariffs

Tariffs can bring in ____________________ for the government, which can be used to fund public services.

Answer explanation

Tariffs can bring in revenue for the government, which can be used to fund public services. This revenue is generated from taxes imposed on imported goods.