PRC-3 · Chapter 20 · Question 17 of 30
The government places a 30% financial tax on all imported steel to make it artificially more expensive than locally produced steel. This protective financial barrier is known as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Tariff
Explanation
A tariff (or customs duty) is a tax levied on imported goods, designed to raise their price and make domestic goods more competitive.
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