Question

"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic producers of the restricted products at the expense of domestic consumers." This statement:

Answer 1

Answer:

The statement is correct

Explanation:

Tariffs are taxes imposed on imports, and more rarely, on exports, in order to place a trade restriction on foreign goods, and promote the production, and consumption of domestic goods.

If domestic producers are less efficient than foreign producers, and the tariff makes the foreign goods more expensive, consumers will have to pay more for the domestic goods.

Tariffs only benefit those who are directly involved with the production of the goods being targeted, while consumers and society at large suffer because of the higher prices.