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Suppose a Country Imposes Tariffs on All Imported Goods

Question 75

Multiple Choice

Suppose a country imposes tariffs on all imported goods.Which of the following best describes the purchasing choices of consumers in the importing country?  


A)  Consumers will purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of fewer total goods than without the tariff. 
B)  Consumers will purchase more domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff. 
C)  Consumers will purchase more domestically produced goods and more foreign goods, resulting in the consumption of fewer total goods than without the tariff. 
D)  Consumers will purchase fewer domestically produced goods and fewer foreign goods, resulting in the consumption of more total goods than without the tariff.

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