A tariff is a tax imposed by a government on goods and services that are imported into the country. This tax increases the price of the imported goods, making them less competitive compared to locally produced goods. The objective of a tariff is to protect domestic industries, generate revenue for the government, and reduce the trade deficit.

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A Tariff Is

Question 54

Multiple Choice

A tariff is

A) a tax imposed on exports.
B) any non-subsidy used to increase trade.
C) a tax imposed on imports.
D) a subsidy granted to imports.
E) any non-tax action used to restrict trade.

Correct Answer: