As a result of a tariff on imports,
A) imports will fall, exports will fall, and total output will decline.
B) imports will fall, exports will rise, and total output will decline.
C) imports will rise, exports will fall, and total output will expand.
D) imports will rise, exports will rise, and total output will expand.

Question

Quizplus · Accepted Answer

A tariff on imports makes imported goods more expensive, reducing their quantity. This can lead to a decrease in exports as other countries may retaliate with their own tariffs, and overall economic output may decline due to reduced trade efficiency.

As a Result of a Tariff on Imports