In an effort to reduce unemployment at home by increasing the demand for domestically-produced goods, the government of Country S imposes a 20 percent tax on a product that is imported from Country T. In retaliation, the government of Country T bans the importing of any products from Country S. Country S has imposed:

Question

Quizplus · Accepted Answer

Country S has imposed a tariff, which is a tax on imported goods. Country T has imposed an embargo, which is a ban on trade with Country S, not allowing any imports from Country S.

In an Effort to Reduce Unemployment at Home by Increasing