PRC-3 · Chapter 20 · Question 2 of 30
To protect its local steel industry, a country places a 20% specific tax on all imported steel, instantly making foreign steel more expensive than local steel. This financial barrier is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A tariff
Explanation
A tariff (or customs duty) is a tax levied by a government on imported goods and services to raise their price and make them less competitive against domestic products.
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