which of the following is not a reason for imposing a tariff? to
Answer Details
The reason for imposing a tariff that is not included in the list is to encourage imports.
A tariff is a tax that a government imposes on imported goods or services. Tariffs are usually imposed for economic or political reasons.
The five main reasons for imposing a tariff are as follows:
- To correct an adverse balance of payments: If a country is importing more goods than it is exporting, it may impose a tariff on imports to reduce the amount of foreign currency leaving the country.
- To raise revenue for the government: Governments can generate revenue by imposing tariffs on imported goods or services.
- To protect infant industries: Governments may impose tariffs to protect new or emerging industries that are not yet able to compete with established industries in other countries.
- To encourage the consumption of home-produced goods: By increasing the cost of imported goods, tariffs can make domestically produced goods more competitive.
- To restrict the importation of goods for political reasons: Governments may impose tariffs as a way of putting pressure on other countries to change their policies or behavior.
Therefore, the correct answer is to encourage imports, as a tariff is intended to make imported goods more expensive and less attractive to consumers in order to protect domestic industries and encourage the consumption of home-produced goods.