A tariff is essentially a tax imposed by a government on goods that are imported into a country. This is done to increase the cost of imported goods and thus make domestic products more competitive in comparison. Options A, C, and D describe other forms of trade barriers such as quotas and export limits, not tariffs.

Solved

A Tariff Is

Question 75

Multiple Choice

A tariff is

A) a government- imposed barrier that sets a fixed limit on the amount of a good that can be imported into a nation.
B) a tax on a good imported into a nation.
C) an agreement between governments to limit exports from a nation.
D) a government- imposed limit on the amount of a good that can be exported from a nation.

Correct Answer: