Which of the following is a drawback of tariffs?

The selection of the drawback of tariffs as less imports and higher prices for an undetermined time accurately captures a significant economic impact of imposing tariffs. Tariffs are taxes placed on imported goods, which typically result in two key outcomes: a decrease in the volume of imports and an increase in prices for consumers.

When tariffs are applied, the cost for foreign goods rises, making them less attractive to consumers compared to domestically produced alternatives. This shift can lead to a reduction in the supply of imported goods available in the market. As imports decline, competition diminishes, which can result in higher prices for both imported goods and domestically manufactured products since consumers have fewer choices.

The implication for consumers is that they may have to pay more for basic goods they would otherwise purchase at lower prices through imports, which can strain household budgets, particularly for items that are not produced domestically or for which domestic production might not meet the local demand.

In addition, the duration of this price increase can be uncertain; it may persist as long as the tariff remains in place, potentially leading to inflationary pressures in the economy, especially if domestic producers do not ramp up production sufficiently to fill the gap left by reduced imports.

When analyzing the other options, it's clear that they do