The principle benefit of tariff protection goes to
A) domestic consumers of the good produced.
B) foreign consumers of the good produced.
C) domestic producers of the good produced.
D) foreign producers of the good produced.
E) the domestic government.

Question

Quizplus · Accepted Answer

Tariff protection allows domestic producers to increase their prices, increase their market share, and potentially earn higher profits. This benefit primarily goes to domestic producers of the good produced, as foreign producers may be priced out of the market or face increased competition. Domestic consumers of the good produced may face higher prices, while foreign consumers may be forced to seek alternative suppliers. The domestic government may also benefit from tariff revenue, but this is not the primary benefit of tariff protection.

The Principle Benefit of Tariff Protection Goes to