A tariff is a(n)
A) tax on an import.
B) tax on domestically produced and sold products.
C) natural barrier to entry.
D) example of a market structure.
E) way to promote competition.

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which is usually levied by the government of the importing country in order to protect domestic industries and generate revenue. Tariffs are often used as a tool of trade policy and can be used to restrict imports, promote competition and raise revenue.

A Tariff Is A(n)