Scenario:

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?

A. an income tax

B. a tariff

C. a corporate tax

D. an excise tax

Question

Business

Colin Cervantes

10 August, 11:45

Scenario:

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?

A. an income tax

B. a tariff

C. a corporate tax

D. an excise tax

+2

Answers (1)

Know the Answer?

Abram Saunders · Answer 1

The correct option is B.

A tariff is define as the tax which is levied on imported goods in order to make them more expensive. Government usually levy tariff on imported goods in order to make them more expensive than the goods that are produce locally. This is done in order to encourage consumers to buy more of locally made goods than imported goods. Buying more of locally made goods improves the local industries and improve the country's GDP.