QUESTION IMAGE
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:
- positive incentive and tariff.
- positive incentive and subsidy.
- negative incentive and subsidy.
- negative incentive and tariff.
Brief Explanations
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.
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The bottom - most option: negative incentive and tariff.