Scenario: Montesia is predominantly a producer and exporter of manufactured goods. However, it imports several agricultural products.
-Refer to the scenario above.Recently,the government of Montesia imposed a tariff on the import of some cash crops.Which of the following is likely to happen in this case?

Question

Quizplus · Accepted Answer

Imposing a tariff on the import of cash crops will likely increase the government's revenue through the collection of the tariff. This does not necessarily mean that the import of cash crops will increase, nor does it directly benefit domestic consumers or producers in terms of welfare or market position.

Scenario: Montesia Is Predominantly a Producer and Exporter of Manufactured