A tariff is a
A) legal limit on sales of a foreign product in the domestic market.
B) regulation of the quality of a foreign product sold in the domestic market.
C) tax on sales of a foreign product in the domestic market.
D) voluntary limit on sales of a foreign product in the domestic market.

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which increases their price and makes them less competitive in the domestic market. It is a common tool used by governments to protect domestic industries and raise revenue for the state. Tariffs can be specific (a fixed amount per unit) or ad valorem (a percentage of the value of the good).

A Tariff Is a