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    Question

    Tariffs serve primarily to:

    A encourage foreign trade Correct Answer Incorrect Answer
    B equalize production capacity Correct Answer Incorrect Answer
    C raise prices on imports Correct Answer Incorrect Answer
    D limit the quantity of goods leaving the domestic market. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Tariffs, which are a government tax on goods or services entering a country, primarily serve to raise prices on imports.

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