Question

Of the​ following, which group is hurt by a​ tariff?

A. foreign consumers of the good

B. foreign government

C. domestic government

D. domestic consumers of the good

E. domestic producers of the good

Answer 1

Tariffs are used to restrict imports by increasing the price of goods and services purchased from another country, making them less attractive to domestic consumers.

Tariffs can have unintended side effects, however. They can make domestic industries less efficient and innovative by reducing competition. They can hurt domestic consumers, since a lack of competition tends to push up prices. They can generate tensions by favoring certain industries, or geographic regions, over others. For example, tariffs designed to help manufacturers in cities may hurt consumers in rural areas who do not benefit from the policy and are likely to pay more for manufactured goods. Finally, an attempt to pressure a rival country by using tariffs can devolve into an unproductive cycle of retaliation, commonly known as a trade war.

A tariff could mean a foreign-made car or bottle of beer will cost more, so domestic autos or beverages sell better or can command higher prices. This makes domestic companies more competitive with foreign firms and helps them keep or even expand their workforces.

While tariffs protect domestic industries, they do so at the expense of consumers, and at the risk of increasing inflation. Tariffs also hurt foreign producers, who may press their own governmen

Thus in the question above the answer is D- Domestic Consumers of the Good.

However if one country keeps imposing tariffs it may affect the foreign government as well resulting in a trade war.