Recall the Application about the impact tariffs have on lower income households to answer the following question(s) . Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods.
-Recall the Application.What proof does the Application use to illustrate that tariffs hurt the poor more than the rich?
A) The proportion of tariffs paid relative to expenditures is higher on the poor than the rich.
B) The proportion of tariffs paid relative to expenditures is lower on the poor than the rich.
C) The total amount of dollars paid by the poor in the form of import tariffs is larger than the rich.
D) The amount of dollars paid by the poor in the form of income taxes is higher with poor individuals than rich individuals.
Correct Answer:
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