A tariff is a tax imposed on imported goods. This is done by the government of a country with the aim of protecting domestic industries from foreign competition. The idea is to make imported goods more expensive and less attractive to consumers, thereby encouraging them to buy locally produced goods. Tariffs are also used to generate revenue for the government.

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A Tariff Is

Question 42

Multiple Choice

A tariff is

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

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