The redistributive effect of an import tariff is the transfer of income from the domestic
A) producers to domestic buyers of the good.
B) buyers to domestic producers of the good.
C) buyers to the domestic government.
D) government to the domestic buyers.

Question

Quizplus · Accepted Answer

The redistributive effect of an import tariff is that it raises the price of the imported good, making it less attractive to buyers, thus transferring income from the buyers to the domestic producers of the good. So, the correct answer is B - buyers to the domestic producers of the good.

The Redistributive Effect of an Import Tariff Is the Transfer