Tariff is defined as what?

Tariff is defined as what?

• A. A tax on exported goods
• B. A tax on imported goods
• C. A tax on all goods
• D. A tax on domestic production

Answer: (B)

Tariffs are taxes charged on goods that come into a country from abroad. They are applied to imports, not to goods a country exports or to all goods in general, and not to domestic production. The idea is to raise government revenue and make imported products more expensive so consumers turn to locally produced items. For example, a tariff on imported cars increases their price, encouraging people to buy domestic cars. Tariffs can be a percentage of the value or a fixed amount per unit.

Tariffs are taxes charged on goods that come into a country from abroad. They are applied to imports, not to goods a country exports or to all goods in general, and not to domestic production. The idea is to raise government revenue and make imported products more expensive so consumers turn to locally produced items. For example, a tariff on imported cars increases their price, encouraging people to buy domestic cars. Tariffs can be a percentage of the value or a fixed amount per unit.