ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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US medical companies
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US government revenue
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Sick people in US
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None of the above
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Detailed explanation-1: -Tariffs hurt consumers because it increases the price of imported goods. Because an importer has to pay a tax in the form of tariffs on the goods that they are importing, they pass this increased cost onto consumers in the form of higher prices.
Detailed explanation-2: -For example, the government can use tariffs to increase the cost of importing goods; this would encourage consumers to consume more local products; thus, promoting the local producers. The consumer is the one who loses.
Detailed explanation-3: -Tariffs can raise the cost of parts and materials, which would raise the price of goods using those inputs and reduce private sector output. This would result in lower incomes for both owners of capital and workers.
Detailed explanation-4: -Quotas can make imported goods more expensive for consumers. Quotas can lead to trade wars between countries. Quotas can hurt the economy by making it less efficient.