Which of the following is NOT an effect of an import tariff?
A) It increases producer surplus by raising the market price and allowing more production.
B) It raises government revenue.
C) It reduces consumer surplus by raising the market price.
D) It improves efficiency in the economy overall because it saves high-paying jobs.

Question

Quizplus · Accepted Answer

Import tariffs do not necessarily improve efficiency in the economy overall because they can lead to retaliatory tariffs from other countries, decreased international trade, and potential harm to industries that rely on imports for production. This can also lead to higher prices for consumers and reduced competition in domestic markets, which can ultimately harm economic efficiency.

Which of the Following Is NOT an Effect of an Import