Question

Even though bananas are not grown in the United States, a tariff is applied to
them when they are imported to the United States. What is the purpose of thi
tariff?
A. To protect American industry
оо
B. To discourage international travel
O
C. To obtain revenue for the U.S. government
O
D. To provide healthy foods for Americans

Answer 1

Answer:

C. To obtain revenue for the U.S. government

Explanation:

A tax applied to imports is a source of revenue for the importing government. When purchases are from outside the country, the importers pay the government some money as import tariffs. This amount of money is revenue to the government.

Import tariffs usually protect local production from unfair competition by cheap imports. In this case, the US does not grow bananas. The tax on bananas must be a source of revenue.