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    Question

    In the short run, a tariff imposed on imports generally:

    A Increases domestic consumer surplus Correct Answer Incorrect Answer
    B Decreases domestic producer surplus Correct Answer Incorrect Answer
    C Protects domestic producers but creates deadweight loss Correct Answer Incorrect Answer
    D Eliminates inefficiency Correct Answer Incorrect Answer

    Solution

    Solution: A tariff raises the domestic price of imported goods, helping domestic producers (increased producer surplus). Consumers pay more (loss in consumer surplus), and the economy suffers a deadweight loss due to reduced consumption and inefficient production.

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