Multiple Choice
Companies generally decide to expand globally to increase their:
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In the context of international trade, a tariff is a type of:
A
tax
B
punishment
C
subsidy
D
grant
Verified step by step guidance1
Understand the definition of a tariff in international trade: A tariff is a fee or tax imposed by a government on imported goods.
Recognize that tariffs increase the cost of imported goods, making them more expensive compared to domestic products.
Identify that a tariff is not a punishment, subsidy, or grant, but rather a form of taxation on imports.
Recall that a subsidy is a financial aid given to support domestic producers, which is the opposite of a tariff.
Conclude that the correct classification of a tariff is a tax, as it generates revenue for the government by taxing imports.
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