Tariffs cause a redistribution of income from:
A) the government to producers and consumers.
B) consumers and the government to producers.
C) producers and consumers to the government.
D) consumers to producers and the government.
E) producers to governments.

Question

Quizplus · Accepted Answer

Tariffs are taxes on imported goods that are paid by consumers, which increases the cost of these goods. This leads to a redistribution of income from consumers to producers (who may benefit from reduced competition) and the government (which collects the tariff revenue).

Tariffs Cause a Redistribution of Income From