A tariff is a tax imposed on imported goods. This makes the imported goods more expensive for consumers, making domestically produced goods relatively cheaper in comparison. It is a form of protectionism for domestic industries, as it can discourage consumers from buying imports and instead buy domestically produced goods.

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What Is a Tariff

Question 26

Multiple Choice

What is a tariff?

A) an encouragement to worldwide specialization and division of labour
B) a quota imposed on imported goods
C) a tax imposed on domestically produced manufactured goods
D) a tax imposed on exported goods
E) a tax imposed on imported goods

Correct Answer: