Question

1A- Why don’t voters complain about U.S. tariffs on imported sugar?

• Because sugar is only a minor ingredient in most products that contain it, consumers tend not to notice its effect on product prices.

• Because the tariffs are paid by sugar importers and not by consumers directly.

• Because the demand for sugar is highly elastic with respect to price.

1B- Which of the following helps explain why U.S. legislators vote for sugar tariffs that are costly to consumers?

• Many consumers do not vote.

• It is not in consumers’ interests to become well-informed about tariff policy.

• Sugar tariff revenues help achieve dramatic reductions in federal budget deficits.

• Consumers actually favor sugar tariffs as an incentive to eat less sugar.

• Because consumers also have the option of using domestically produced sugar, which is not subject to tariffs.

Answer 1