Asked by Jalen Taylor on May 18, 2024
Verified
Tariffs and quotas are costly to consumers because
A) the price of the imported good falls.
B) the supply of the imported good increases.
C) import competition increases for domestic goods.
D) consumers have to switch to higher-priced domestic goods.
Higher-Priced Domestic
Domestic products or services that are sold at a higher price compared to their foreign equivalents or competitive products in the local market.
Tariffs
Taxes imposed by a government on imported goods to protect domestic industries or to generate revenue.
Quotas
Restrictions set by governments on the amount of a certain good that can be imported or exported.
- Investigate the outcomes of trade strategies on the economic well-being of consumers, producers, and state authorities.
Verified Answer
CJ
Courtland JamesMay 21, 2024
Final Answer :
D
Explanation :
Tariffs and quotas make the imported goods expensive, which means consumers have to switch to higher-priced domestic goods. This results in an increase in the cost of living for consumers.
Learning Objectives
- Investigate the outcomes of trade strategies on the economic well-being of consumers, producers, and state authorities.