A tariff

A) legally specifies maximum import or export ceilings.
B) increases allocative efficiency.
C) is a special tax applied only to internationally traded goods.
D) lowers the prices of imported goods.

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to raise revenue or protect domestic industries.

Internationally Traded Goods

Products and services that are bought and sold across national borders, subject to international agreements and regulations.