The effect of a tariff is
A) an increase in consumers' surplus.
B) a decrease in producers' surplus.
C) an increase in tariff revenues for government.
D) b and c
E) all of the above

Question

Quizplus · Accepted Answer

Tariffs are taxes imposed on imported goods, which generally increase the price of those goods in the importing country. This can lead to an increase in tariff revenues for the government as they collect these taxes on imported goods.

The Effect of a Tariff Is