A tariff is
A)a limit placed on the quantity of goods that can be imported into a country.
B)a tax imposed by a government on goods imported into a country.
C)a subsidy granted to importers of a vital input.
D)a health and safety restriction imposed on an imported product.

Question

Quizplus · Accepted Answer

A tariff is a tax imposed by a government on goods imported into a country. It is designed to make the imported goods more expensive and less competitive in the domestic market, thus protecting domestic industries from foreign competition. This is done by increasing the cost of importing goods and making the domestic goods more attractive.

Option A is incorrect, as it refers to a quota, which is a limit on the quantity of goods that can be imported into a country.

Option C is incorrect, as it refers to a subsidy granted to importers rather than a tax imposed on them.

Option D is incorrect, as it refers to a health and safety restriction and not a tax.

A Tariff Is