A tariff redistributes income in a small nation from the _____________ to the _____________ of the commodity.
A)domestic producers,domestic consumers
B)government,domestic producers
C)domestic consumers,domestic producers
D)domestic consumers,government

Question

Quizplus · Accepted Answer

A tariff is a tax on imported goods, which makes them more expensive compared to domestically produced goods. To protect domestic producers or industries, tariffs are imposed. As a result, consumers would prefer domestic products as they are cheaper than the imported ones. Due to the increase in demand for domestic products, the domestic producers can charge more by keeping their prices higher. Thus, a tariff redistributes income from domestic consumers to domestic producers.

A Tariff Redistributes Income in a Small Nation from the _____________