Discuss WGU Global Economics For Managers (C211) Exam Topic 2 Question 11

Which statement best summarizes the overall economic effect of tariffs?

AThey increase total economic surplus

BThey benefit consumers more than producers

CThey transfer surplus from consumers to producers and the government

DThey eliminate inefficiencies in global trade

Suggested Answer: C

In Global Economics for Managers, tariffs are shown to redistribute economic surplus, making option C correct. When a tariff is imposed, consumers lose surplus due to higher prices, while domestic producers gain surplus and the government collects tariff revenue.

However, the gains to producers and government do not fully offset consumer losses, resulting in deadweight loss. Thus, tariffs reduce total economic welfare even though certain groups benefit.

Options A, B, and D are incorrect.

Therefore, option C accurately summarizes the overall economic effect of tariffs.

Get Premium Global Economics for Managers (C211) Questions as Interactive Web-Based Practice Test or PDF Real Exam Format Detailed Explanations Instant Access Get Your Practice Test

12 comments · newest first

Lindsay 1 month ago

Definitely C. Producers gain, but consumers lose out.

Leanna 1 month ago

I feel like A could be right, but it’s complicated.

Albina 1 month ago

I think C is the best choice. Tariffs really shift surplus.

Casie 2 months ago

C makes sense, but I wonder if it really benefits the government that much.

Rebbeca 2 months ago

A is misleading. Tariffs don't increase total economic surplus.

Javier 2 months ago

Surprised to see people think tariffs help! They create inefficiencies.

Eun 2 months ago

I disagree, tariffs usually hurt consumers more.

Lavonne 2 months ago

C is the right answer. Tariffs shift surplus from consumers to producers.

Solange 2 months ago

I thought tariffs were supposed to eliminate inefficiencies, but I guess they can create new ones too, right?

Ciara 3 months ago

I feel like option C makes the most sense, but I’m a bit confused about how it relates to government revenue.

Katy 3 months ago

I remember a practice question that mentioned tariffs benefiting producers, but I can't recall if it was about overall economic effects.

Novella 3 months ago

I think tariffs usually shift surplus from consumers to producers, but I'm not entirely sure if that's the best summary.

WGU Global Economics for Managers (C211) Exam - Topic 2 Question 11 Discussion