Of the following,which group is hurt by a tariff?
A) domestic producers of the good
B) foreign consumers of the good
C) domestic consumers of the good
D) domestic government
E) foreign government

Question

Quizplus · Accepted Answer

The imposition of a tariff leads to an increase in price for the imported good. As a result, domestic consumers of the good are hurt because they have to pay a higher price for the same product. Domestic producers of the good may benefit from a tariff because it reduces competition from foreign producers, allowing them to increase prices and profits. Foreign consumers of the good and foreign government are not directly affected by a tariff, although the foreign government may choose to retaliate with their own tariffs. Domestic government may benefit from tariff revenue.

Of the Following,which Group Is Hurt by a Tariff