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Explore TopicChoose the Best Answer
A
Tariffs generally lead to a decrease in consumer surplus in the importing country.
B
Tariffs increase the overall quantity of goods consumed domestically.
C
Tariffs can protect domestic industries by making imported goods more expensive.
D
Tariffs always result in an increase in government revenue without any negative effects.
E
Tariffs may lead to retaliation from other countries, affecting international relations.
Understanding the Answer
Let's break down why this is correct
Answer
Tariffs are taxes that a government places on goods imported from other countries, and they can have significant effects on international trade. When a country imposes a tariff, it makes imported goods more expensive, which can lead consumers to buy more domestic products instead. For example, if the U. S. puts a tariff on steel from another country, American-made steel becomes cheaper by comparison, encouraging buyers to choose it over the more expensive imported steel.
Detailed Explanation
All statements about tariffs in this question are incorrect. Other options are incorrect because People often think tariffs help consumers by protecting local jobs; Some believe tariffs increase local consumption.
Key Concepts
Tariffs
International Trade
Consumer and Producer Surplus
Topic
Effects of Tariffs on Trade
Difficulty
hard level question
Cognitive Level
understand
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