Exhibit 28-6 Refer to Exhibit 28-6.A tariff

Question

Exhibit 28-6  Refer to Exhibit 28-6.A tariff

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which raise their price for consumers. This makes domestically produced goods relatively cheaper and thus benefits domestic producers by increasing demand for their products. However, domestic consumers may face higher prices and reduced choices, making them worse off. Overall, the tariff can make domestic producers better off but at the expense of domestic consumers, and possibly reducing economic efficiency. Therefore, choice B is the best option as domestic producers are the only beneficiaries.

Exhibit 28-6 Refer to Exhibit 28-6.A Tariff