GENERAL KNOWLEDGE

A TARIFF IS A TAX IMPOSED ON

  • A. Consumer goods
  • B. Domestic goods
  • C. Imported goods ✓
  • D. Exported goods

 

The answer to the question is: C. Imported goods

A tariff is a form of trade barrier that governments use to protect domestic industries and generate revenue by imposing additional costs on imported goods. It is a common tool used in international trade policy to control the flow of goods between countries.

Tariffs can be classified into two types: specific tariffs and ad valorem tariffs. Specific tariffs are fixed amounts levied per unit of the imported good, while ad valorem tariffs are calculated as a percentage of the value of the imported good.

Tariffs have various purposes and effects. They can serve as a source of government revenue, protecting domestic industries from foreign competition, and encouraging domestic production. However, they also increase the cost of imported goods for consumers, potentially leading to higher prices and reduced consumer choices.

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