Question

The Australian government requires people importing goods to the country to pay an import duty—a type of tariff that raises the price of the imported goods. The Australian government most likely has this policy to
A.
discourage trade with foreign countries.
B.
raise money for Australian public schools.
C.
encourage more businesses to create new products.
D.
make buying goods made in Australia more appealing.

Answer 1

D. Tariffs raise the price of imported goods, making domestically made goods relatively cheaper and more attractive to consumers, thereby protecting and encouraging local industries.