70
QuizMultiple Choice

Topic Test

Question 70 • FowU - Financial Math - B

How do tariffs on imports affect a country’s balance of trade?

Answer
A
Tariffs raise government revenue.
B
Tariffs ensure that all countries are traded with equally.
C
Tariffs reduce the amount of imports a country makes.
D
Tariffs increase the amount of money a country makes from imports.

Explanation

A tariff is a tax on imported goods, which usually makes them more expensive for buyers. As a result, people and businesses may buy fewer imported goods, reducing the amount of imports the country makes. So the correct choice is “Tariffs reduce the amount of imports a country makes.”

AI-written and checked against the verified answer.

Previous
Next