Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

9. International Trade

Tariffs on Imports

Microeconomics

9. International Trade

Tariffs on Imports

Previous problem

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Multiple Choice

A tariff on imports benefits domestic producers because

They receive the tariff revenue

It prevents imports from rising above a specified quantity

It reduces their producer surplus, making them more efficient

It raises the price for which they can sell their products in the domestic market.

All of the above.

Previous problem

Verified step by step guidance

Understand the concept of a tariff: A tariff is a tax imposed on imported goods, which makes these goods more expensive in the domestic market.

Analyze the impact of tariffs on domestic producers: By making imported goods more expensive, tariffs can reduce competition from foreign producers, allowing domestic producers to increase their prices.

Consider the effect on producer surplus: With higher prices, domestic producers can increase their producer surplus, which is the difference between what producers are willing to accept for a good versus what they actually receive.

Evaluate the statement options: Domestic producers do not receive tariff revenue directly; the government does. Tariffs do not necessarily prevent imports from rising above a specified quantity unless it's a quota. Tariffs do not inherently make producers more efficient; they can reduce competition, which might lead to less efficiency.

Conclude with the correct answer: The primary benefit of a tariff for domestic producers is that it raises the price for which they can sell their products in the domestic market, increasing their revenue and potentially their market share.