Asked by Haimanti Bhattacharyya on May 04, 2024
Verified
Graphical analysis of tariffs reveals that
A) they benefit domestic consumers at the expense of domestic producers.
B) revenue gains outweigh the costs to domestic consumers.
C) they increase domestic production of the good for which imports face tariffs.
D) although the benefits are not shared equally, everyone in the domestic economy benefits from tariffs.
Graphical Analysis
The use of diagrams, charts, and graphs to visually represent data and analyze trends and patterns.
Domestic Consumers
Individuals or entities within a country that purchase goods and services primarily for personal use, not for export or resale.
- Examine the consequences of tariffs on the collection of revenue and the well-being of producers and consumers.
- Understand the foundational concepts behind trade protection mechanisms, such as tariffs, quotas, and voluntary export restraints.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
C
Explanation :
Tariffs on imports make imported goods more expensive, which reduces competition for domestic producers. This allows domestic producers to increase production of the good that faces tariffs, as they can more effectively compete with the higher-priced imports.
Learning Objectives
- Examine the consequences of tariffs on the collection of revenue and the well-being of producers and consumers.
- Understand the foundational concepts behind trade protection mechanisms, such as tariffs, quotas, and voluntary export restraints.