Which statement about trade protection is correct?
A.
A tariff results in a greater decrease in demand for an import the lower is its price elasticity of demand.
B.
Embargoes are only an effective trade barrier when the demand for imports is price-elastic.
C.
Export subsidies to domestic firms will prevent the dumping of foreign products in the domestic market.
D.
Quotas are less effective than tariffs for raising government revenue.
Exam No：9708_s21_qp_13 Year：2021 Question No：26
Answer:
D
Knowledge points:
2.2.3.1 price elasticity of demand
6.2.2.1 tariffs
6.2.2.2 import quotas
6.2.2.3 export subsidies
6.2.2.4 embargoes
6.2.2.5 excessive administrative burdens (‘red tape’)
Solution:
Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Download
Android
Download
Download
Google Play
Download
Download