Which of these will not be a typical consequence of an import tariff?

Explanation

This Economics question is asking which of the given options is not a typical consequence of an import tariff. An import tariff is a tax imposed on imported goods to make them more expensive than domestic goods. The question is asking which option is not a typical effect of imposing such a tax.

Option A states that producer surplus increases in the domestic market. A producer surplus is the difference between the price a producer receives and the cost of production. When an import tariff is imposed, imported goods become more expensive, which makes domestic goods more attractive. Domestic producers can then increase the price of their goods and still sell them. This results in an increase in producer surplus. Import tariffs usually increase producer surplus, so option A is not the correct answer.

Option B states that consumer surplus increases in the domestic market. Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price paid. When an import tariff is imposed, imported goods become more expensive, which makes domestic goods more attractive. Domestic producers can then increase the price of their goods and still sell them. This results in an increase in consumer prices, which reduces consumer surplus. Import tariffs usually decrease consumer surplus, so option B is the correct answer.

Option C states that deadweight loss is created. Deadweight loss is the loss of efficiency that occurs when the cost of producing a good exceeds the price that consumers are willing to pay. When an import tariff is imposed, the price of imported goods increases, which reduces the quantity demanded. This results in a decrease in economic efficiency, which creates deadweight loss. Import tariffs usually create deadweight loss, so option C is not the correct answer.

Option D states that government revenue is created. When an import tariff is imposed, the government collects revenue from the tax on imported goods. Import tariffs usually create government revenue, so option D is not the correct answer.

In conclusion, the correct answer to this Economics question is Option B: consumer surplus increases in the domestic market. When an import tariff is imposed, it usually decreases consumer surplus, not increase it.