Asked by
Hillary Balbi
on Dec 08, 2024
Verified
Refer to Figure 20.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $10 per barrel, it will
A) import zero barrels.
B) import 5 million barrels.
C) export 5 million barrels.
D) export 7 million barrels.
Tariff
A tax imposed on imported goods and services, which can be used to restrict trade, as they increase the cost of imported goods and services, making them more expensive to consumers.
- Assess the connection between trade policies and their effects on the volumes of international trade, including imports and exports.
Verified Answer
KW
Learning Objectives
- Assess the connection between trade policies and their effects on the volumes of international trade, including imports and exports.
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