Which statement is true of tariffs?
A) They strengthen balance-of-payments positions.
B) They strengthen supply-and-demand patterns.
C) They increase special interests' privileges.
D) They strengthen international relations.
E) They promote competition.

Question

Quizplus · Accepted Answer

Tariffs often increase special interests' privileges by protecting domestic industries from foreign competition, allowing these industries to maintain higher prices and market share within the domestic market. This protection can lead to lobbying and political influence by these industries to maintain or increase tariffs for their benefit.

Which Statement Is True of Tariffs