A tariff is a tax on imported goods, which is imposed by the government to increase the price of these goods and make them less attractive and competitive in the domestic market. This can be done for a variety of reasons, including protecting domestic producers, raising revenue for the government, and addressing trade imbalances.

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A Tariff Is

Question 32

Multiple Choice

A tariff is:

A) the restriction of trade through regulations on domestic producers.
B) a restriction on the quantity of goods that can be imported.
C) equal to exports minus imports.
D) a tax on imports.

Correct Answer: