If free international trade is compromised by the imposition of an import quota or tariff,
A)all of the following are true
B)import-competing producers in the country that imposes the tariff or quota will be able to sell a larger quantity at higher prices
C)consumers of import goods will obtain a larger quantity at lower prices
D)workers in export industries will find more jobs
E)consumers of export goods will obtain a larger quantity,although only at higher prices

Question

Quizplus · Accepted Answer

If an import quota or tariff is imposed, it will protect domestic industries from foreign competition, allowing them to sell a larger quantity of goods at higher prices. This benefit is restricted to domestic producers, and not to consumers or workers in export industries. Therefore, option B is the correct choice. Option C is incorrect because the import quota or tariff increases the price of imported goods, making it more expensive for consumers. Option D is incorrect because the employment opportunities in export industries will be reduced due to the decline in international trade. Finally, option E is also incorrect because the price of export goods is likely to decrease due to the reduction in demand from foreign countries, rather than increase.

If Free International Trade Is Compromised by the Imposition of an Import