A tariff is a:
A) tax on imports.
B) subsidy on exports.
C) restriction on the quantity of domestic goods consumed by foreigners.
D) restriction on the quantity of imports from foreign producers.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports, imposed by a government to raise revenue or to protect domestic industries from foreign competition. It is not a subsidy on exports or a restriction on the quantity of domestic goods consumed by foreigners; rather, it restricts the quantity of imports from foreign producers by making them more expensive relative to domestic goods.

A Tariff Is A