The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P 1 : Price of the good in the international market.P 2 : Price of the good in the domestic market after the imposition of tariff by the government.P 3 : No-trade price of the good in the domestic market.
-Which of the following countries is forbidden to impose export tariff by its constitution?

Question

The figure below shows the demand (D) and supply (S) curves of a good produced domestically in an economy as well as traded in the international market.Figure 21.1
In the figure,
P 1 : Price of the good in the international market.P 2 : Price of the good in the domestic market after the imposition of tariff by the government.P 3 : No-trade price of the good in the domestic market. 
-Which of the following countries is forbidden to impose export tariff by its constitution?

Quizplus · Accepted Answer

The United States Constitution explicitly prohibits the federal government from imposing export tariffs, as stated in Article I, Section 9, Clause 5.

The Figure Below Shows the Demand (D) and Supply (S)