Which of the following is true about a tariff?
A)Makes domestic consumers worse off.
B)Makes both domestic producers and consumers worse off.
C)Makes everyone better off.
D)Makes domestic producers worse off.

Question

Quizplus · Accepted Answer

A tariff is a tax on imports, which makes imported goods more expensive for domestic consumers. This reduces the demand for imports and shifts the market towards domestic products. Domestic producers may benefit from increased demand, but consumers face higher prices and fewer choices, making them worse off.

Which of the Following Is True About a Tariff