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

Which statement best summarizes the overall economic effect of tariffs?
C) They transfer surplus from consumers to producers and the government
A) They increase total economic surplus
B) They benefit consumers more than producers
D) They eliminate inefficiencies in global trade

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

Actual exam question for WGU's Global Economics for Managers exam
Question #: 11
Topic #: 2
[All Global Economics for Managers Questions]

Which statement best summarizes the overall economic effect of tariffs?

Show Suggested Answer Hide Answer
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.


by Sean at Jul 20, 2026, 02:12 AM

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Casie
1 day ago
C makes sense, but I wonder if it really benefits the government that much.
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Rebbeca
6 days ago
A is misleading. Tariffs don't increase total economic surplus.
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Javier
11 days ago
Surprised to see people think tariffs help! They create inefficiencies.
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Eun
17 days ago
I disagree, tariffs usually hurt consumers more.
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Lavonne
22 days ago
C is the right answer. Tariffs shift surplus from consumers to producers.
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Solange
27 days ago
I thought tariffs were supposed to eliminate inefficiencies, but I guess they can create new ones too, right?
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Ciara
1 month ago
I feel like option C makes the most sense, but I’m a bit confused about how it relates to government revenue.
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Katy
1 month ago
I remember a practice question that mentioned tariffs benefiting producers, but I can't recall if it was about overall economic effects.
upvoted 0 times
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Novella
1 month ago
I think tariffs usually shift surplus from consumers to producers, but I'm not entirely sure if that's the best summary.
upvoted 0 times
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