In general, who will benefit as the result of a tariff? I. Domestic producers
II) Domestic consumers
III) The domestic government
A) I only
B) II only
C) both I and III
D) both II and III
E) All of the above are correct.

Question

Quizplus · Accepted Answer

Tariffs are taxes on imported goods. Domestic producers benefit because tariffs make imported goods more expensive, reducing competition. The domestic government benefits from the revenue generated by the tariff. Domestic consumers generally do not benefit, as they face higher prices.

In General, Who Will Benefit as the Result of a Tariff