Question

A tariff:_________.

a. makes domestic producers worse off.
b. makes everyone better off.
c. makes domestic consumers worse off.
d. makes both domestic producers and consumers worse off.

Answer 1

C. Makes domestic consumer worse off.

Step-by-step explanation:

A tariff is levied on the exports and imports between two countries. It is meant to regulate the foreign trade and encourage the domestic industries and safeguard them from the competition of foreign goods. Tariffs are source of income for states. Tariffs and import export quotas are most used instruments of protectionism. Tariffs are fixed or variable.

It can put the domestic consumer in an advantageous position as due to tariffs they would not be able to get less costly products.