Question

Tariffs are taxes the federal government puts on goods manufactured in this country. True False

Answer 1

Answer:

False

Explanation:

It is not true that a tariff is a tax imposed on products manufactured in this country. In fact, the opposite is true. A tariff is a tax imposed on imports (products manufactured somewhere else and bought by the country). The main purpose of these tariffs is to restrict imports through higher pricing, thus making them less attractive to costumers. In this way, the government incentivizes the consumption of national goods.

Answer 2

A tariff is a tax that is placed on either imported or exported goods. It is a means of taxing foreign goods to encourage domestic industry. The answer is false.