Question

The government of Country Q has just implemented a new tax on goods imported from neighboring countries. The government hopes that citizens of Country Q will purchase fewer items from neighboring countries and more items produced within Country Q's borders.

Based on the information provided, what type of tax has Country Q implemented?

Responses

a corporate tax
a corporate tax

an excise tax
an excise tax

a tariff
a tariff

an income tax

Answer 1

a tariff

A tariff is a tax on imported goods intended to make foreign products more expensive and encourage consumers to buy domestically produced items.