Which of the following is a tariff?

• A. Protectionism
• B. Tariffs
• C. Indirect tax
• D. Monetary policy

Answer: (B)

Tariffs are taxes on imported goods. By adding a cost to foreign products, they raise the price of imports and help protect domestic industries while also providing government revenue. This makes tariffs a direct tool used in protectionism to influence trade and domestic competition.

Protectionism describes the policy goal of shielding local industries, which may use tariffs among other tools, but it isn’t the tax itself. Indirect tax is a broad category of taxes on goods and services; tariffs are a specific border tax on imports. Monetary policy concerns the central bank’s control of money supply and interest rates, not taxation.