A tariff is a
A) tax imposed on domestic producers of export goods.
B) legal limit on the amount of a good that can be imported.
C) tax imposed on imported goods.
D) legal limit on the amount of a good that can be produced by foreign owners of a firm located in a host country.

Question

Quizplus · Accepted Answer

A tariff is a tax imposed on imported goods, usually with the intention of protecting domestic industries from foreign competition. A is incorrect because it refers to a tax on domestic producers. B is incorrect because it refers to a quota, not a tariff. D is incorrect because it refers to a restriction on foreign ownership, not a tariff.

A Tariff Is a