A tax imposed by a government on imports of a good into a country is called a
A)tariff.
B)quota.
C)value added tax.
D)sales tax.

Question

Quizplus · Accepted Answer

A tax imposed on imports of a good is called a tariff. A tariff increases the price of the imported good, making it less competitive with similar domestic goods, and encourages consumers to buy domestic products. Tariffs are often used by governments to protect domestic industries and revenue generation. Quotas, on the other hand, limit the amount of a good that can be imported into a country, while value added tax and sales tax are taxes charged on goods consumed domestically.

A Tax Imposed by a Government on Imports of a Good