What is a tax or fee that must be paid on goods imported from other countries called?

• A. Tariff
• B. Excise tax
• C. Subsidy
• D. Quota

Answer: (A)

Verified step by step guidance

1. Understand that the question is asking for the name of a tax or fee imposed specifically on goods that are brought into a country from abroad.
2. Recall that a 'tariff' is a tax or duty imposed by a government on imported goods, which makes these goods more expensive and can protect domestic industries.
3. Differentiate tariffs from other options: an 'excise tax' is usually applied to specific goods produced or sold domestically, a 'subsidy' is a financial aid given to support producers or consumers, and a 'quota' is a limit on the quantity of goods imported rather than a tax.
4. Conclude that the correct term for a tax on imported goods is a 'tariff' because it directly relates to the cost added to imports.
5. Summarize that tariffs are used in trade policy to regulate imports and protect domestic markets by increasing the price of foreign goods.