The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)
A) protective tariff.
B) revenue tariff.
C) dumping duty.
D) import quota.
E) excise tax.

Question

Quizplus · Accepted Answer

A revenue tariff is imposed by a government with the purpose of generating revenue for the government rather than to protect domestic industries or to penalize foreign producers, as in the case of protective tariffs or dumping duties. An excise tax is a tax on specific goods or services, rather than on imports in general. An import quota limits the quantity of imports regardless of where they come from. Therefore, B is the best choice as it directly relates to the taxing of the imported automobiles for the purpose of generating revenue.

The US Government Imposes a Tax on Imported Automobiles from Japan