What is a tax or duty on imports or exports used to restrict trade and raise the price of imported goods?

What is a tax or duty on imports or exports used to restrict trade and raise the price of imported goods?

• A. Tariff
• B. Resources
• C. Shanty towns
• D. Sahel

Answer: (A)

A tariff is a tax or duty placed on goods crossing borders, used to restrict trade and raise the price of imported goods. By increasing the cost of imports, tariffs make foreign products more expensive relative to domestic ones, which can slow the flow of foreign trade and encourage consumers to buy locally produced goods. Governments may use tariffs to raise revenue or to shield domestic industries from competition, though they can also lead to higher prices for consumers and tensions with trading partners. For example, applying a tariff on imported steel raises the cost of steel in the economy, which can raise prices for products that rely on steel and stimulate domestic production. The other options don’t fit this definition: resources are materials used to produce goods, not a tax or policy; shanty towns are informal settlements, not trade tools; and the Sahel is a geographic region, not a trade instrument.

A tariff is a tax or duty placed on goods crossing borders, used to restrict trade and raise the price of imported goods. By increasing the cost of imports, tariffs make foreign products more expensive relative to domestic ones, which can slow the flow of foreign trade and encourage consumers to buy locally produced goods. Governments may use tariffs to raise revenue or to shield domestic industries from competition, though they can also lead to higher prices for consumers and tensions with trading partners. For example, applying a tariff on imported steel raises the cost of steel in the economy, which can raise prices for products that rely on steel and stimulate domestic production.

The other options don’t fit this definition: resources are materials used to produce goods, not a tax or policy; shanty towns are informal settlements, not trade tools; and the Sahel is a geographic region, not a trade instrument.