What term describes taxes on goods that are imported into a country?

Prepare for the Western Governors University ECON2000 D089 Principles of Economics Exam. Study with multiple-choice questions and detailed explanations. Enhance your understanding and boost your scores!

The term that accurately describes taxes on goods that are imported into a country is not export tariff, but rather protective tariff, specific tariff, or ad valorem tariff depending on the context.

A protective tariff is specifically designed to shield domestic industries from foreign competition by making imported goods more expensive. This effectively encourages consumers to buy domestically-produced items instead. A specific tariff applies a fixed amount of tax per unit of the imported good, while an ad valorem tariff is based on the value of the imported goods, charging a percentage of the total value.

Each of these tariffs applies to imported goods, as the question indicates, highlighting how different types of import taxes serve various economic purposes. Understanding the reason behind these imports tariffs is key to grasping how a country manages its economy and trade balance.

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