What does the term 'Tariff' refer to?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Show Answers

A tax imposed by the government on imported goodsA tax imposed by the government on goods sent abroadTaxes applied to both imports and exportsNo taxes related to trade

Explanation

A tariff is a tax that the government places on goods either when they are imported into the country or exported out of it. Therefore, tariffs can apply to both imports and exports.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What does the term 'Tariff' refer to?

Explanation

More Basic of Economics MCQs