Final answer:
The critical difference between protective and revenue tariffs is that a protective tariff is aimed at supporting domestic industries by making imported goods more expensive, while a revenue tariff's primary purpose is to collect money for the government.
Step-by-step explanation:
The main difference between a protective tariff and a revenue tariff is their primary goals. A protective tariff is designed to shield domestic industries by raising the cost of imported goods, which encourages consumers to buy domestically-produced items even if they are less efficient. Conversely, a revenue tariff is imposed primarily to generate income for the government rather than to protect domestic production. In this context, option B is correct: A protective tariff is designed to assist less efficient domestic producers, whereas a revenue tariff is designed to raise money for the government.
These tariffs impact consumers, as protectionism leads to higher prices for imported goods. Despite the increased cost to consumers, protectionism indirectly acts like a subsidy, benefiting domestic producers. The implementation of a protective tariff often sparks a debate about its fairness since it tends to benefit some industries or economic sectors at the expense of others, including consumers and potentially agricultural producers.