Asked by Ragena Riley on May 19, 2024
Verified
When a tariff or quota on a product is removed, this policy action
A) benefits domestic producers of the product.
B) benefits consumers of the product.
C) benefits the government.
D) hurts nations exporting the product.
Tariff
Government-imposed duties on imported or, less commonly, exported goods, often established to protect domestic industries and to generate revenue.
Quota
A limit set by a government on the quantity of a particular product that can be imported or exported within a given timeframe, used for trade regulation.
Policy Action
A deliberate action taken by a government or other organization to influence economic, social, or environmental outcomes.
- Examine the repercussions of trade policies for consumers, businesses, and governmental bodies.
Verified Answer
YA
Yesenia AlemanMay 23, 2024
Final Answer :
B
Explanation :
Removing a tariff or quota generally lowers the price of the imported product, which benefits consumers by making the product more affordable. It does not benefit domestic producers, who face increased competition, nor does it benefit the government through tariff revenues. It typically benefits, rather than hurts, exporting nations by allowing them greater access to the market.
Learning Objectives
- Examine the repercussions of trade policies for consumers, businesses, and governmental bodies.