When hospital administrators in Estonia import kidney dialysis machines from the United States,they must pay a tax when these goods enter their country.This tax is called a(n):
A) boycott
B) quota
C) tariff
D) exchange control
E) embargo

Question

Quizplus · Accepted Answer

A tariff is a tax imposed by a government on imported or exported goods. In this case, the hospital administrators in Estonia are importing kidney dialysis machines from the United States and paying a tax upon entry into their country, which makes it a tariff. A boycott is a voluntary refusal to engage in commercial activity with a particular country or company. A quota is a restriction imposed by a government on the quantity of a specific product that can be imported or exported. An exchange control is a government-imposed restriction on the amount of currency that can be exchanged, while an embargo is a government-imposed ban on trade with a particular country or group of countries. None of these other options fittingly describes the situation as described, thus 'C) Tariff' is the best choice.

When Hospital Administrators in Estonia Import Kidney Dialysis Machines from the United