Which tariff type primarily aims to make imported goods less competitive relative to domestic products?

Prepare for the Western Governors University ECON2000 D089 Principles of Economics Exam. Study with multiple-choice questions and detailed explanations. Enhance your understanding and boost your scores!

The chosen answer is correct because a protective tariff is specifically designed to shield domestic industries from foreign competition by making imported goods more expensive. By imposing this type of tariff, the government raises the cost of imports, which encourages consumers to purchase domestic products instead. This can help nurture local businesses, protect jobs, and stimulate economic activity within the country. The primary function of a protective tariff is not to generate revenue for the government but to promote domestic products by making them more attractive compared to their foreign counterparts.

In contrast, a specific tariff imposes a fixed fee per quantity of goods imported, while an ad valorem tariff is based on a percentage of the value of the goods. Both of these kinds can influence pricing, but their primary goals are not aimed expressly at protectionism. An export tariff, on the other hand, is aimed at goods leaving the country, which does not align with the purpose of making imports less competitive.

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