A tariff can best be described as a(n):
A)excise tax on an imported good
B)government payment to domestic producers to enable them to sell competitively in world markets
C)excise tax on an exported good
D)law that sets a limit upon the amount of a good that can be imported
E)law that sets a limit on the amount of a good that can be exported

Question

Quizplus · Accepted Answer

A tariff is an excise tax on an imported good, meaning it is a tax imposed by the government on imported goods to make them more expensive and less competitive with domestic products. Tariffs can be used to protect domestic industries, raise revenue for the government, or as a political tool in international trade negotiations.

A Tariff Can Best Be Described as A(n)