Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Question

Quizplus · Accepted Answer

The imposition of a banana quota suggests that there may be pressure from banana farmers in Pacifica to limit foreign imports and protect their domestic industry. Comparative advantage and government revenue are not mentioned as reasons for the trade restriction.

Suppose That the Country of Pacifica Imposes a Quota on Bananas