A tariff is a tax that is imposed on imported goods. It is designed to make the imports more expensive and less competitive with domestically produced goods, thereby protecting domestic industries and generating revenue for the government. Tariffs can be specific (based on the quantity of goods) or ad valorem (based on the value of goods).

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What Is a Tariff

Question 143

Multiple Choice

What is a tariff?

A) a tax on imports
B) a legal limit on quantities of goods that can be imported
C) a voluntary limit on quantities of goods that can be imported
D) a quality restriction on imports

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