A tariff is
A) a subsidy on domestically produced goods.
B) the difference between the world market price and the domestic price when a group of firms in an industry collude successfully.
C) a tax on imported goods.
D) a government imposed restriction on the quantity of a specific good that can be imported into the country and sold.

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, designed to protect domestic industries and raise revenue for the government. Tariffs increase the price of imported goods, making them less competitive with domestic products, which may stimulate domestic production and lead to job creation. However, tariffs may also lead to trade wars and higher prices for consumers.

A Tariff Is