What do we call a tax imposed on imports?

Prepare for the DECA Economics Exam. Study with interactive quizzes, multiple choice questions, hints, and detailed explanations. Get ready to excel on your test!

A tax imposed on imports is known as a tariff. Tariffs are a common tool used by governments to regulate international trade. By levying a tax on imported goods, tariffs can increase the price of those goods, making domestic products more competitive. This can protect local industries and jobs but can also lead to trade tensions and higher prices for consumers.

Economies of scale, form utility, and task utility do not relate to the taxation of imports. Economies of scale refer to the cost advantages that businesses experience when production increases, form utility relates to the value added to products by changing their physical form, and task utility refers to the usefulness of a good or service in accomplishing a particular task. None of these concepts pertain to the imposition of a tax on imports, which is specifically defined as a tariff.

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