Question

A tariff is best described as

a. An excise tax on an exported good.
b. A government payment that allows producers to be more competitive in world markets.
c. An excise tax on imported goods.
d. A limit on the amount of a good that can be imported.

Answer 1

A tariff is an excise tax on imported goods, making them more expensive for consumers.

Step-by-step explanation:

A tariff is best described as c. An excise tax on imported goods. Tariffs are taxes imposed by governments on imported goods and services. They make imports more expensive for consumers, discouraging their consumption. For example, large, flat-screen televisions imported from China to the U.S. may be subject to a tariff rate.