During 2005-2006 Europe Imported More Than $70 Million Worth of US

question 33

Multiple Choice

During 2005-2006 Europe imported more than $70 million worth of US long -grain rice. In 2006, the European Union threatened to restrict imports of long -grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

• A) The price of long-grain rice would increase
• B) The quantity of long-grain rice imports would decrease
• C) There would be a increase in long-grain rice consumption
• D) There would be an increase European in rice production

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Definitions:

Economic Decision

A choice made by individuals, businesses, or governments that involves the allocation of resources, considering the costs and benefits to optimize outcomes.

Surpluses and Shortages

Conditions where the quantity of a good or service exceeds or falls short of the quantity demanded at a given price.

Competitive Behavior

Actions taken by businesses aimed at gaining an advantage over rivals in the market, often through pricing, innovation, or marketing strategies.

Economic Choice

The decision made by individuals or organizations regarding the allocation of resources or the selection among alternate goods and services.