The main redistribution effect of a tariff is the transfer of income from
A)domestic buyers to domestic producers.
B)domestic producers to domestic buyers.
C)domestic government to domestic consumers.
D)domestic producers to domestic government.
E)foreign producers to domestic consumers.

Question

Quizplus · Accepted Answer

A tariff increases the price of imported goods, benefiting domestic producers by allowing them to sell at higher prices, while domestic buyers pay more, effectively transferring income from buyers to producers.

The Main Redistribution Effect of a Tariff Is the Transfer