Often, duties and taxes are imposed on cars that are imported from other countries. What types of incentives are these duties and taxes?

A. Positive incentive and subsidy
B. Negative incentive and subsidy
C. Positive incentive and tariff
D. Negative incentive and tariff



Answer :

Final answer:

Duties and taxes on imported cars act as positive incentives for domestic production and consumption.


Explanation:

Positive incentive is when duties and taxes are imposed on imported cars. These act as positive incentives for domestic production and consumption, encouraging buying domestically instead of importing. On the other hand, negative incentives would discourage importing through increased costs.


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