How does the federal government influence the flow of goods and services into the country and,consequently,create extra profitability or rents in domestic production that would not have been ?there under free market conditions?

Question

Quizplus · Accepted Answer

Tariffs are taxes placed on imported goods, making them more expensive and less competitive with domestic products. This creates an artificial advantage for domestic producers, allowing them to charge higher prices and earn higher profits than they would in a free market without tariffs.

How Does the Federal Government Influence the Flow of Goods