A tax that is imposed by the importing country when an imported good crosses its international boundary is called
A)an import quota.
B)an income tax.
C)a voluntary export restraint.
D)a tariff.
E)a sales tax.

Question

Quizplus · Accepted Answer

A tax that is imposed by the importing country is called a tariff. An import quota refers to a limit on the quantity of a good that can be imported, while a voluntary export restraint is an agreement between exporting and importing countries to limit the quantity of a good that can be exported. Income tax and sales tax are both domestic taxes that are not specific to imports.

A Tax That Is Imposed by the Importing Country When