Tariffs as Import Taxes in Economics

Steps:

• Recall the standard economic definition of a tariff as a government-imposed tax on imported goods.
• Evaluate each option against this definition to identify the match.
• Eliminate options that describe other trade barriers or incentives.
• Confirm the precise term for a tax on imports.

Why D is correct:

• A tariff is defined in economics as a tax levied by a government on imported goods to protect domestic industries or raise revenue.

Why the others are wrong:

• A: A complete ban on imports is an embargo or quota, not a tariff.
• B: A minimum price for domestic producers is a price floor, unrelated to imports.
• C: A payment to exporters is an export subsidy, the opposite of a tariff.

Final answer: D