Countries usually impose restrictions on free foreign trade to...
Protect foreign producers Protect foreign consumers Protect domestic producers Protect domestic consumers.
If a country allows trade and the domestic price of a good is higher than the world price, The country will become an exporter of the good The country will become an importer of the good The country will neither import nor export Additional information about demand is needed to determine whether the country will export or import the good.
A tariff and import quota will both Increase the quantity of imports and raise domestic price Increase the quantity of imports and lower the domestic price Reduce the quantity of imports and raise the domestic price Reduce the quantity of imports and lower the domestic price.
If Brazil has a comparative advantage in producing rubber, and trade in rubber is allowed,
Brazil will become an importer of rubber Brazil will become an exporter of rubber Brazil could become either an exporter or importer It is impossible to determine whether Brazil will become an importer or an exporter of rubber without additional information about rubber prices.
The US is importing down pillows. The world price of these pillows is $25. the US imposes a $10 tariff on pillows. The US is a price taker in the pillow market. As a result of the tariff... The US price of pillows will be $25 and the quantity of pillows purchased will decrease The US price of pillows will be $35 and the quantity of pillows purchased will decrease The US price of pillows will be $25 and the quantity of pillows purchased will increase The US price of pillows will be $35 and the quantity of pillows purchased will increase.
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