Georgia Assessments for the Certification of Educators GACE Practice Test

If a government imposes an import tariff on consumer electronics, what is the likely goal?

1. Decrease cost of imported electronics

2. Protect domestic electronics industry

3. Discourage domestic production of electronics

4. Increase competition and lower prices in electronics

The correct answer is: Decrease cost of imported electronics

The imposition of an import tariff on consumer electronics is primarily aimed at protecting the domestic electronics industry. By increasing the cost of imported electronics through tariffs, the government makes these foreign products more expensive relative to domestically produced goods. This acts as a financial barrier that can reduce the competitiveness of imports, encouraging consumers to buy locally made products. This strategy is often employed to support local manufacturers, help preserve jobs in the domestic industry, and promote economic stability within that sector. While decreasing the cost of imported electronics would be contrary to the purpose of a tariff, the focus here is on leveraging the tariff to benefit and protect local industry actors, which aligns with the objective of shielding them from international competition. The other options also miss this key goal of safeguarding and nurturing the domestic market against foreign competition.