Protection in the form of tariffs create winners and losers.Winners include ________ and losers include ________.
A)U.S.consumers and taxpayers; foreign firms that rely on U.S.exports
B)firms sheltered from foreign competition; U.S.consumers and taxpayers
C)U.S.firms that rely on exports to foreign countries; foreign manufacturers
D)the U.S.government; firms sheltered from foreign competition

Question

Quizplus · Accepted Answer

Tariffs protect domestic producers from foreign competition, allowing them to increase prices and profits. This benefits firms that do not have to face foreign competition in the domestic market, making them the winners. On the other hand, U.S. consumers and taxpayers have to pay higher prices for goods and services, which reduces their purchasing power and standard of living. This makes them the losers. Thus, Option B is the correct choice.

Protection in the Form of Tariffs Create Winners and Losers