Tariffs

Question

Tariffs

Quizplus · Accepted Answer

Tariffs are taxes imposed by a government on imported goods. Revenue tariffs are imposed to raise revenue for the government, while protective tariffs are imposed to make foreign goods more expensive and protect domestic producers from foreign competition. Import quotas are a different trade barrier that limits the amount of a specific good that can be imported. Excise taxes are taxes on specific goods, whether they are imported or not. Per-unit subsidies are payments made by a government to domestic producers for each unit of a good they export, to make their goods cheaper on the international market. None of these definitions match the description of tariffs, which are taxes on imported goods specifically.