Introduction: Think about what you learned about tanffs and excise taxes and sort each option into the correct

category

Can discourage product use

Excise taxes

Tariffs

Are levied on imports

Can be applied to gambling

Are taxes applied to foreign goods

is added to gas purchases

Protect US-made goods

Intro

Done

The correct answer is

Tarifs:

Are levied on imports - A tariff is specifically a tax on an import. An import is a product that comes from abroad. Are taxes applied to foreign goods - (foreign goods and and imports are the same thing). Protect US-made goods - Tariffs are applied in order to reduce the demand for imports, and promote the substitution of those imports with local products.

Excise tariffs:

Can discourage product use - Excises are usually (not always) added on products that are considered undesirable such as Tobacco, Liquour and gambling. Can be applied to gambling - As explained in the previous item. Is added to gas purchases - Excise tariffs are added to gasoline because it pollutes the air.