Answer:
A tax on automobiles imported into the United States that raises prices on imported vehicles to make the price of cars produced in the United States more competitive is protective tariff; a tax on all oil imported into the United States, which is implemented to raise money for the U.S. government, is Revenue tariff.
Step-by-step explanation:
Protective tariff:
- Protective tariff is understood by the tariffs that are enacted by the government with a motive to promote and protect the domestic industries.
- In protective tariff, government allocates higher tax rate for the products that are imported from foreign countries when the same product is produced in the country.
- This helps the domestic industries to compete with the foreign industries.
- Government also can provide protection to domestic industry as well as collect more revenue due to this tariff.
Revenue tariff:
- Revenue tariff is the tariff imposed with a motive to collect revenue by the government.
- By imposing revenue on imports and exports, government collects revenue which can be used in development, service and defense of the country.