A government is considering placing tariffs, taxes, on imported goods. Write a cost-benefit analysis for the situation—with at least one benefit and one cost.(1 point)

Question

Responses

Domestic businesses would sell their goods better since the imported goods would cost more; however, consumers would be required to pay more for the goods.
Domestic businesses would sell their goods better since the imported goods would cost more; however, consumers would be required to pay more for the goods.

Domestic businesses would sell their goods better since the imported goods would cost more, and more domestic jobs would be created to meet the higher demand for domestic goods.
Domestic businesses would sell their goods better since the imported goods would cost more, and more domestic jobs would be created to meet the higher demand for domestic goods.

International trade would be unaffected since the number of goods imported would be the same; the price would just be different. As a result, this would not lead to domestic job creation.
International trade would be unaffected since the number of goods imported would be the same; the price would just be different. As a result, this would not lead to domestic job creation.

Consumers would be required to pay more for the goods, and there would be less trade with foreign countries since their goods would not sell as well.
Consumers would be required to pay more for the goods, and there would be less trade with foreign countries since their goods would not sell as well.
choose one

Answer 1

The most comprehensive response is:

Domestic businesses would sell their goods better since the imported goods would cost more, and more domestic jobs would be created to meet the higher demand for domestic goods.

This option effectively highlights a significant benefit of placing tariffs—supporting domestic businesses and potentially leading to job creation—while implying that the decrease in competition from foreign goods can foster a healthier domestic market.