Solution Found!
Analyzing Trade Policies' Impact on Producers, Consumers, and Trade
Chapter 9, Problem 6(choose chapter or problem)
Which of the following trade policies would benefit producers, hurt consumers, and increase the amount of trade?
a. the increase of a tariff in an importing country
b. the reduction of a tariff in an importing country
c. starting to allow trade when the world price is greater than the domestic price
d. starting to allow trade when the world price is less than the domestic price
Questions & Answers
QUESTION:
Which of the following trade policies would benefit producers, hurt consumers, and increase the amount of trade?
a. the increase of a tariff in an importing country
b. the reduction of a tariff in an importing country
c. starting to allow trade when the world price is greater than the domestic price
d. starting to allow trade when the world price is less than the domestic price
ANSWER:Step 1 of 2
A tariff is a tax that a government places on certain imported goods. This increases the cost of imported goods, making domestic goods more appealing.
Meanwhile, trade policies are the rules and agreements that a country uses to control its imports and exports.
Watch The Answer!
Analyzing Trade Policies' Impact on Producers, Consumers, and Trade
Want To Learn More? To watch the entire video and ALL of the videos in the series:
In this video, the concepts of tariffs and trade policies are explained, highlighting how tariffs affect the cost of imported goods and how trade policies control imports and exports. The video then examines four trade policy scenarios, emphasizing their impact on producers, consumers, and trade, ultimately identifying the correct answer as option c, which fulfills all the specified conditions.