Asked by Sanna Gunnarsson on May 03, 2024
Verified
Tariffs and import quotas would benefit the following groups, except
A) consumers of the product.
B) domestic producers of the product.
C) workers in domestic firms producing the product.
D) the government of the importing country.
Import Quotas
Limits set by a government on the quantity or value of certain goods that can be imported into a country.
Domestic Producers
Companies or individuals that produce goods and services within their own country.
Government
Government is the organized system or institution that governs and implements decisions, laws, and policies in a nation, state, or community.
- Assess the impact of trade regulations on consumer welfare, producer profitability, and government revenue.
Verified Answer
CF
Christina FitzerMay 08, 2024
Final Answer :
A
Explanation :
Tariffs and import quotas make imported goods more expensive, which benefits domestic producers and workers by protecting them from foreign competition, and can increase government revenue through tariffs. However, they harm consumers by raising prices.
Learning Objectives
- Assess the impact of trade regulations on consumer welfare, producer profitability, and government revenue.