It is likely that a tariff will:
A)improve world welfare.
B)increase the physical volume of trade flows.
C)be the most efficient source of government revenue.
D)improve relations with trading partners.
E)do none of the above.

Question

Quizplus · Accepted Answer

Tariffs, by their nature, increase the cost of imported goods for domestic consumers and businesses, reducing demand for those goods and potentially causing retaliatory measures from trading partners. This can lead to a decrease in trade flows and may ultimately harm global welfare. While tariffs can generate revenue for governments, they are generally considered less efficient than other forms of taxation. Overall, tariffs are not typically seen as a positive policy choice.

It Is Likely That a Tariff Will