The United States government puts high tariffs on a certain product that is imported from other countries. What effect does this have in the United States?
A. U.S. producers have to compete more with the imported product.
B. High tariffs create a greater demand for the imported product.
C. The product costs more in the U.S. that on the world market.
Is it C?
Yes, it is C.
Fantastic! Thanks!
You're welcome.
Yes, the correct answer is C. When the United States government puts high tariffs on a certain product that is imported from other countries, it causes the product to cost more in the U.S. compared to its price on the world market.
Tariffs are taxes or fees imposed on imported goods, making them more expensive for domestic consumers. By increasing the price of imported products, tariffs aim to protect domestic industries and provide a competitive advantage to U.S. producers. However, this increased cost is ultimately borne by consumers, who have to pay more for the imported product.
Option A is not correct because high tariffs actually make it more difficult for U.S. producers to compete with the imported product, as their prices are now higher in comparison. Option B is also not correct because high tariffs typically dampen demand for imported products, as they become more expensive, rather than creating a greater demand.