Asked by Pradeep Patil on May 01, 2024
Verified
Research studies indicate that
A) U.S. producers gain more from tariffs than U.S. consumers lose.
B) the costs of trade restrictions are proportionately higher for high-income groups than for low-income groups.
C) the revenue from tariffs equals the total cost that tariffs impose on consumers.
D) U.S. consumers lose more from tariffs than U.S. producers gain.
Trade Restrictions
Measures imposed by governments to control the exchange of goods and services across borders, often to protect domestic industries.
U.S. Consumers
Individuals or groups within the United States who purchase goods and services for personal use.
- Analyze the consequences on the economy resulting from trade limitations, focusing on their effects on national employment levels and foreign affairs.
- Understand the link between trade policies, economic growth, and the well-being of nations.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
D
Explanation :
Research studies indicate that the costs of tariffs are mostly borne by consumers in the form of higher prices, and U.S. consumers ultimately pay more for imported goods. Therefore, U.S. consumers tend to lose more from tariffs than U.S. producers gain.
Learning Objectives
- Analyze the consequences on the economy resulting from trade limitations, focusing on their effects on national employment levels and foreign affairs.
- Understand the link between trade policies, economic growth, and the well-being of nations.