Question

which of the following is a tax levied on an imported good or service?
a. a local content requirement
b. a subsidy
c. a quota
d. an embargo
e. a tariff

Explanation:

To determine the answer, we analyze each option:

• Option A (Local content requirement): Mandates domestic production portion, not a tax.
• Option B (Subsidy): Financial aid to domestic producers, not a tax on imports.
• Option C (Quota): Limits import quantity, not a tax.
• Option D (Embargo): Total import ban, not a tax.
• Option E (Tariff): Defined as a tax on imported goods/services.

Answer:

E. A tariff