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Of the Following, Who Gains Because of Tariffs and Why

Question 103

Multiple Choice

Of the following, who gains because of tariffs and why?


A) Foreign governments because they gain more revenue.
B) Domestic buyers because they pay a lower price.
C) Domestic buyers because they can be sure of buying high-quality products.
D) Foreign producers because they earn more total revenue.
E) Domestic producers of protected goods because they can sell at a higher price.

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