A tariff is specifically defined as a tax imposed on imported goods and services. It is used by governments to generate revenue or to protect domestic industries from foreign competition by making imported goods more expensive. Choices A, B, and C describe other forms of trade barriers or protectionist policies, not tariffs.

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A Tariff Is

Question 76

Multiple Choice

A tariff is:

A) a requirement that importers obtain a license in order to engage in international trade.
B) a quantity restriction on imports that is imposed by the importing country.
C) the use of government policy to protect domestic businesses from foreign competition.
D) a tax on imports.

Correct Answer: