Final answer:
A tax on imports intended to raise money for the federal government is known as a revenue tariff. While protective tariffs seek to shield domestic industries, revenue tariffs are more about generating government income. Tariffs serve multiple purposes including revenue generation and industry protection.
Step-by-step explanation:
A tax on imports can have different functions, but when the primary purpose of the tax is to raise money for the federal government, it is known as a revenue tariff. Unlike protective tariffs, which aim to protect domestic industries by adding a cost to imported goods thus making them less competitive against home-made products, revenue tariffs are primarily focused on generating income for the government. Governments use tariffs as a way of raising revenue and occasionally to protect domestic industries.
For example, in recent years, flat-screen televisions imported to the U.S. from China have faced a 5% tariff rate. This tariff adds to the cost for consumers and can serve both to generate revenue and potentially reduce the volume of imports in favor of domestic products if it's high enough. However, excessive use of tariffs can lead to industrial inefficiencies and harm consumer welfare as industries become less competitive internationally.
Therefore, the answer to the student's question is 'B. revenue tariff'. This kind of tariff is leveraged on imported goods with the intent of bringing in revenue for a country's government.