Suppose that Canada imposed an import quota on beef.Which statement identifies the most likely results?
A) Sales of Canadian beef would rise; exports of other industries would increase.
B) Sales of Canadian beef would rise; exports of other industries would decline.
C) Sales of Canadian beef would not change; exports of other industries would increase.
D) Sales of Canadian beef would not change; exports of other industries would decline.

Question

Quizplus · Accepted Answer

An import quota on beef would likely lead to increased sales of Canadian beef due to reduced foreign competition. However, other industries might face retaliatory trade measures, leading to a decline in exports.

Suppose That Canada Imposed an Import Quota on Beef