Which of the following is NOT correct about the effects of a tariff on an imported product?
A)Tariffs benefit domestic producers by raising price and domestic output.
B)Tariffs increase government revenue.
C)Tariffs mean higher prices and less consumption for consumers of the product.
D)Tariffs increase the efficiency of how resources are allocated.

Question

Quizplus · Accepted Answer

Tariffs do not increase the efficiency of how resources are allocated. In fact, tariffs create market inefficiencies by distorting the allocation of resources towards less efficient domestic producers and away from more efficient foreign producers.

Which of the Following Is NOT Correct About the Effects