Question

A revenue tariff is designed to assist more efficient domestic producers, whereas a protective tariff is designed to promote imports.

Question 13 options:
True
False

Answer 1

False

Step-by-step explanation:

Revenue tariff means increasing earnings. It will raise government revenue instead of protecting domestic ventures. It is a direct income in the form of tax to obtain from corporate revenues.

On the other hand, protective tariffs are designed to protect domestic producers. It protects local manufacturers by imposing a heavy duty on imported products, which enables the products to become less attractive. Therefore, the aim is to reduce imports.