Tariffs lead to

A) the contraction of relatively efficient industries.
B) an over allocation of resources to relatively efficient industries.
C) an increase in the foreign demand for domestically produced goods.
D) an under allocation of resources to relatively inefficient industries.

Tariffs

Tariffs are taxes imposed by a government on imported goods and services, often used to protect domestic industries from foreign competition.

Efficient Industries

Industries that achieve maximum output with minimum input, utilizing resources in the most cost-effective manner.

Allocation of Resources

The distribution of available resources, including land, labor, and capital, among various uses to maximize efficiency and effectiveness.