Which term refers to a tax imposed on imports to protect domestic industries?

The term that refers to a tax imposed on imports to protect domestic industries is a tariff. A tariff functions as a price mechanism, increasing the cost of foreign goods entering a country. By raising the price of imports, tariffs encourage consumers to purchase domestically produced goods instead. This protectionist measure is designed to support local industries and preserve jobs within the country.

In contrast, a quota sets a physical limit on the quantity of a specific good that can be imported, rather than imposing a tax. Free trade refers to the absence of trade barriers and tariffs, promoting international trade without restrictions. The Gini coefficient measures income inequality within a population and does not pertain to trade practices or protections. Understanding the role of tariffs in protecting domestic industries is crucial in the context of trade policy and economic strategy.