Multiple Choice
The United States imports cars from Japan. If the United States imposes a tariff on cars imported from Japan
A) U.S. consumers lose and Japanese producers gain.
B) U.S. tariff revenue equals the loss of U.S. consumer surplus.
C) U.S. consumers lose and U.S. producers gain.
D) U.S. car manufacturers gain revenue equal to the revenue lost by Japanese car manufacturers.
Correct Answer:
Verified
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