The effect of a tariff or a quota is to
a. raise the price of a commodity in the exporting country above the price in an importing country.
b. raise the price of a commodity in an importing country above the price in the exporting country.
c. lower the price of the commodity in all countries.
d. raise the price of the commodity in all countries.
b
You might also like to view...
In the United States, which workers displaced by trade are able to adjust the easiest?
a. those in the service industries b. those in the manufacturing industries c. Evidence indicates that there is no difference across industries. d. There is no available evidence on this topic.
Under a tying contract,
A. the price a buyer must pay for a good is tied to the size of his or her purchase. B. a customer agrees as a condition of buying a good to purchase one or more additional goods from the same seller. C. a firm agrees to allow members of its competitors’ boards of directors to sit on its board. D. a firm agrees to pay an intermediary for having arranged a business deal for the firm.