Tariffs are imposed by governments on imports, not exports.

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Prepare for the Finance and Investment Challenge Test. Study with flashcards and multiple-choice questions, complete with hints and explanations. Boost your finance understanding and investment skills for your assessment!

Multiple Choice

Tariffs are imposed by governments on imports, not exports.

Explanation:
Tariffs are taxes levied on goods crossing borders. They are most commonly applied to imports to protect domestic industries and raise revenue, but governments can and do impose tariffs on exports in certain contexts to conserve resources or influence trade. Because tariffs on exports do exist, the statement that tariffs are imposed on imports, not exports, is not universally true. Therefore, the claim is false. In practice, import tariffs are the standard, but export duties occur in some situations.

Tariffs are taxes levied on goods crossing borders. They are most commonly applied to imports to protect domestic industries and raise revenue, but governments can and do impose tariffs on exports in certain contexts to conserve resources or influence trade. Because tariffs on exports do exist, the statement that tariffs are imposed on imports, not exports, is not universally true. Therefore, the claim is false. In practice, import tariffs are the standard, but export duties occur in some situations.

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