A tariff is a tax
A) on an exported good.
B) on an imported good.
C) imposed on all traded goods.
D) imposed on people's income.
E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.

Question

Quizplus · Accepted Answer

A tariff is a tax specifically imposed on imported goods when they enter a country's borders. It is meant to make foreign goods more expensive and less competitive with domestic goods. Tariffs are not imposed on exports, income, or all traded goods, just on specific imported goods.

A Tariff Is a Tax