What is a tariff defined as?

A tariff is defined as a tax or duty imposed on imported or exported goods, making the choice that identifies a tariff accurately reflect its purpose. The primary function of a tariff is to regulate international trade by making imported goods more expensive, which can help protect domestic industries from foreign competition. Tariffs can also generate revenue for the government and influence the trade balance by making foreign products less attractive to consumers.

Other options do not align with the formal definition of a tariff. A payment to the government for services rendered does not pertain to tariffs, as those are generally direct fees for specific services rather than a tax on goods. A tax imposed on domestic businesses would not be classified as a tariff, as tariffs specifically concern the importation and exportation of goods. A penalty for violating trade regulations also does not constitute a tariff, as penalties are punitive measures rather than a form of taxation on goods. Understanding this distinction is crucial in grasping international trade policies and economic measures.