Which of the following is likely to happen if the government imposes a tariff on the imports of a good?

Question

Quizplus · Accepted Answer

If the government imposes a tariff on the imports of a good, it will increase the cost of foreign goods, making domestic products more competitive. This will lead to increased profits for the domestic industry as they face less competition from foreign producers. It is possible that domestic consumers may end up paying more for the good, but it is not guaranteed. Additionally, the government may earn revenue from the tariff depending on its design, so B is not necessarily true. A is also not likely to happen, as the tariff is designed to reduce foreign competition.

Which of the Following Is Likely to Happen If the Government