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Which of the following are reasons why governments might use tariffs?

1) i and ii
2) ii only
3) ii and iii
4) iii only

User Sahar
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1 Answer

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Governments may impose tariffs to protect domestic industries or raise revenue, not to increase exports, promote free trade, or reduce government spending. The answer is 2) ii only.

Governments may use tariffs to raise revenue, protect domestic industries, or protect domestic consumers. Tariffs are taxes on imported goods, and they can be used to increase the price of imported goods, making them less competitive with domestically produced goods. This can help to protect domestic industries from foreign competition. Tariffs can also be used to raise revenue for the government.

Option 1 is incorrect because tariffs are not used to increase exports.

Option 3 is incorrect because tariffs are not used to promote free trade.

Option 4 is incorrect because tariffs are not used to reduce government spending.

Therefore, the only correct answer is 2) ii only.

User Yugr
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