Free traders point out that:
A) There is usually an efficiency gain from having tariffs
B) There is usually an efficiency loss from having tariffs
C) Producers lose from tariffs at the expense of consumers
D) Producers lose from tariffs at the expense of the government

Question

Quizplus · Accepted Answer

Free traders believe that there is usually an efficiency loss from having tariffs. This is because tariffs increase the price of imported goods, reducing consumer demand and lowering competition for domestic producers. This reduces overall efficiency in the market and can create inefficiencies in the global economy.

Free Traders Point Out That