Now that Austria is open to trade, it is:
A)an importer of tape measures and a price taker
B)an importer of tape measures but imposes a quota on imports
C)an exporter of tape measures but imposes a quota on exports
D)an importer of tape measures but imposes a tariff on imports

Question

Quizplus · Accepted Answer

Since Austria is now open to trade, it can be assumed that it is importing tape measures. However, the best option is D because it imposes a tariff on imports which would make the imported tape measures more expensive and may encourage the domestic production of tape measures.

Now That Austria Is Open to Trade, It Is