Question

Suppose the United States government imposes a tax on each Guatemalan-made T-shirt that is sold in the United States. This is called a _____. subsidy quota tariff

Answer 1

This is called a tariff. Hope this helps! :)

Answer 2

Answer:

Option C, Tariff

Explanation:

Guatemalan-made T-shirt are imported from some other country. Usually in order to overcome the extra cost saddened by import of items, good and services from other countries tariffs are imposed. The indirect purpose of tariff is to discourage the use of import items and hence strengthen the economy. The direct objective of imposing tariff is to prevent local industrial business, generate revenues and take political benefits from other countries.

Hence, option C is correct