Question

often duties and taxes are imposed on cars that are imported from other counties. what types of incentives are these duties and taxes?
options:

1. positive incentive and tariff.
2. positive incentive and subsidy.
3. negative incentive and subsidy.
4. negative incentive and tariff.

Explanation:

Duties and taxes on imported cars (like tariffs) are negative incentives (discourage imports) and these duties/taxes are not subsidies. So the option with "negative incentive and tariff" (the bottom - most option) is correct as negative incentives discourage actions (importing here) and tariffs are a type of tax on imports.

Answer:

The bottom - most option: negative incentive and tariff.