What is a tariff?
Incorrect answer A. a tax on exports
Correct answer B. a tax on imports
Incorrect answer C. a bonus to producers
Incorrect answer D. a rebate for consumer
B. a tax on imports
explain why it's B
A tariff is a tax imposed on imported goods by the government of the importing country. The purpose of a tariff is to protect domestic producers from foreign competition and to raise revenue for the government. Tariffs can increase the cost of imported goods, making them less competitive with domestically produced goods. This can lead to increased demand for domestically produced goods, supporting domestic industries and possibly creating jobs. Therefore, option B is the correct answer.
The correct answer is B. A tariff is a tax on imports. To understand this concept, let's break it down:
1. Start by understanding the concept of imports and exports: Imports refer to products or goods that are brought into a country from a foreign country, while exports refer to products or goods that are produced in one country and sold to another country.
2. Now, think about how a tariff works: A tariff is a tax imposed by a government on imported goods when they enter the country. This tax is typically paid by the importer, who then may pass on the cost to consumers by raising prices.
So, to answer the question, a tariff is a tax on imports (not exports), designed to make imported goods more expensive and less competitive in the domestic market. The primary purpose of a tariff is to protect domestic industries by offering them a competitive advantage against foreign competitors.