Which term means a tax on imported goods?

• A. Quota
• B. Tariff
• C. Subsidy
• D. Embargo

Answer: (B)

A tariff is a tax on goods imported from other countries. This is exactly what the question is asking for: it describes how tariffs raise the price of foreign-made products, which can protect domestic industries by making competing imports more expensive and also generate government revenue.

A quota, by contrast, limits the quantity of goods that can be imported, not the price. A subsidy is money the government pays to support domestic producers, not a tax on imports. An embargo is a complete ban on trade with a country. Understanding how these tools affect prices and competition helps explain why tariffs are used in trade policy.