When a Government Puts a Tax on an Imported Good

question 49

Multiple Choice

When a government puts a tax on an imported good that effectively stops all imports of that good,it is a(n)

• A) prohibitive tariff.
• B) export subsidy.
• C) quota.
• D) special drawing right.
• E) negative import tax.

---

Definitions:

Tax-free

Financial gains or receipts that are not subject to tax by authorities, often due to specific exemptions or regulations.

Tax-deferred Plans

Retirement or investment accounts that allow taxpayers to postpone tax liabilities on earnings until funds are withdrawn in the future.

Retirement

The period in an individual's life during which they cease full-time work, typically due to age.

SIMPLE

An acronym for Savings Incentive Match Plan for Employees, a type of retirement savings plan that allows employees and employers to contribute to traditional IRAs set up for employees.