If Indonesia enacts an embargo on all goods from Canada and changes average import tariffs from 10% to 30%, what is the expected impact in Indonesia?
A) increased exports to Canada
B) more consumer choice
C) less consumer choice
D) lower prices for Indonesian consumers

Question

Quizplus · Accepted Answer

An embargo on all goods from Canada would limit the amount of available goods for Indonesian consumers, leading to less consumer choice. Additionally, a 20% increase in import tariffs would make imported goods more expensive and less accessible, further limiting consumer choice.

If Indonesia Enacts an Embargo on All Goods from Canada