Tariffs reallocate income from
A)consumers to producers.
B)producers to consumers.
C)government to producers.
D)consumers to foreigners.
E)Both A and D.

Question

Quizplus · Accepted Answer

Tariffs increase the prices of imported goods, which results in consumers paying more for those goods. Producers, on the other hand, benefit from increased demand for domestically produced goods, as consumers switch to purchasing alternatives. Therefore, tariffs reallocate income from consumers to producers.

Tariffs Reallocate Income from