Which of the following best defines a tariff?

Study for the FBLA Exploring Economics Test. Master key concepts with flashcards and multiple choice questions, each offering hints and answers. Prepare confidently for your exam!

A tariff is best defined as a tax imposed on an imported good. This tax is levied by a government and serves multiple purposes, such as generating revenue for the government and protecting domestic industries from foreign competition by making imported goods more expensive. By increasing the cost of imports, tariffs encourage consumers to buy domestically produced goods, which can help stimulate the local economy. This concept is integral to trade policy and international economics, as it illustrates how governments can influence trade balances and protect local markets through taxation.

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