Which of the following is the best example of a tariff?
A) a tax placed on all small cars sold in the domestic market
B) a limit imposed on the number of small cars that can be imported from a foreign country
C) a subsidy from the American government to domestic manufacturers of small cars so they can compete more effectively with foreign producers of small cars
D) a $1000-per-car fee imposed on all small cars imported

Question

Quizplus · Accepted Answer

A tariff is a tax or duty to be paid on a particular class of imports or exports. Option D, a $1000-per-car fee imposed on all small cars imported, directly fits the definition of a tariff as it is a fee charged on imported goods.

Which of the Following Is the Best Example of a Tariff