2) What is a TRUE statement concerning the imposition in the U.S. of a tariff on...
2) What is a TRUE statement concerning the imposition in the
U.S. of a tariff on cheese?
A) It lowers the price of cheese domestically.
B) It raises the price of cheese internationally.
C) It raises revenue for the government.
D) It will always result in retaliation from abroad.
E) it leads to higher domestic demand for cheese.
Homework Answers
Answer
Option C
C) It raises revenue for the government
The US is the importer of cheese if it imposes tariff and the tariff increases the price in the domestic market by the tariff amount. The import with tariff creates revenue for the government.
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