The purpose of a tariff is to . A. provide competition to local industry B. protect local employment C. increase the amount of foreign imports D. increase the amount of foreign exchange E. raise revenue

E. Raise revenue

Explanation:

Tariffs are taxes placed on imports or exports between two independent countries. They are taxes imposed on goods and services imported from other country. Tariff just like taxes are used iy n generating revenue for the government. An increase in tariff, all things being equal will invariably lead to increases in government revenues. Other reasons behind tariff includes but are not limited to restriction of trade from other countries, discouragement of imports, protection of domestic/local industries and so on.

The answer is E. raise revenue.

Explanation: By definition, tariff represents tax imposed on goods or services imported into a country.

The essence of tariff is to make imports less attractive by increasing the prices of imported goods and services. By so doing, individuals' better option would then be to patronize local produce.

Tariff is a tool used by the government to protect local production / industries, especially nascent ones from stiff foreign competition or to generate more revenue. So, option E is correct.

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