What is the primary purpose of a tariff?

Get ready for the Leaving Certificate Business Test. Prepare with flashcards and multiple choice questions complete with hints and explanations to help you succeed. Ace your exam now!

The primary purpose of a tariff is to raise the price of imports. Tariffs are taxes imposed by a government on imported goods, which effectively increases their cost in the domestic market. This additional cost can make imported goods less competitive compared to locally produced items, encouraging consumers to buy domestic products instead. By raising the price of imports, tariffs can protect local industries from foreign competition, support domestic jobs, and contribute to the overall economy.

In terms of the context provided, while some options might touch on related concepts, only the concept of raising import prices directly aligns with the fundamental intention behind imposing tariffs. The other choices do not accurately represent the primary purpose of tariffs, which is centered around influencing the price dynamics of imports in a manner favorable to domestic producers.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy