Tariffs are...

Tariffs are...

• A. Taxes on imports and exports
• B. Tariffs
• C. Quotas
• D. Excise Duties

Answer: (B)

Tariffs are taxes charged on goods as they cross a country’s border, usually on imports. They raise government revenue and make imported products more expensive relative to domestic ones, which can help protect local industries but may push up prices for consumers and invite retaliation from other countries. The other ideas describe different trade controls: a quota limits how much can be imported; an excise duty is a tax on specific goods sold domestically; and a general statement about taxes on imports and exports is broader than the specific border tax instrument. So the term that best names this policy tool is the one that directly refers to these border taxes.

Tariffs are taxes charged on goods as they cross a country’s border, usually on imports. They raise government revenue and make imported products more expensive relative to domestic ones, which can help protect local industries but may push up prices for consumers and invite retaliation from other countries. The other ideas describe different trade controls: a quota limits how much can be imported; an excise duty is a tax on specific goods sold domestically; and a general statement about taxes on imports and exports is broader than the specific border tax instrument. So the term that best names this policy tool is the one that directly refers to these border taxes.