Which term describes a tax on imported goods intended to encourage consumption of domestic products?

Which term describes a tax on imported goods intended to encourage consumption of domestic products?

• A. Economy
• B. Import
• C. Tariff
• D. Export

Answer: (C)

A tariff is a tax on imported goods. By making foreign products more expensive relative to domestic ones, tariffs encourage people to buy locally produced goods, supporting domestic industries and jobs. They can also raise revenue for the government. The other terms don’t fit: an import is the goods brought into a country, not a tax; an export is goods sent out of the country; and economy is the broad system of production and trade, not a tax.

A tariff is a tax on imported goods. By making foreign products more expensive relative to domestic ones, tariffs encourage people to buy locally produced goods, supporting domestic industries and jobs. They can also raise revenue for the government. The other terms don’t fit: an import is the goods brought into a country, not a tax; an export is goods sent out of the country; and economy is the broad system of production and trade, not a tax.