Question

Suppose the United States government imposes a tax on each Guatemalan-made T-shirt that is sold in the United States. This is called a _____.

Answer 1

This is called a Tariff

Answer 2

Answer: Tariff

Suppose the United States government imposes a tax on each Guatemalan-made T-shirt that is sold in the United States. This is called a tariff.

Explanation:  

Tariff refers to tax imposed or levied on imported goods (products) and service by the government in order to increase the price and make import less desirable. It is imposed on imported goods and services in order to protect local or domestic industries and encourage their growth. It also serves as a means of restriction in order to reduce the importation of specific goods and services.