CLEP Principles of Management Exam Prep

Answer - D - A tariff is a special tax that is imposed on goods imported from other countries.

Key Takeaway: Tariffs are also called “custom duties” and were once a major source of revenue for governments and a way to protect domestic producers of goods. Tariffs reduce the quantity of imports and move the domestic market closer to its equilibrium without trade. With the imposition of tariffs, total surplus in the market is reduced by a known quantity.