In 2006, the European Union EU) Threatened to Ban Imports

question 115

Multiple Choice

In 2006, the European Union EU) threatened to ban imports of long -grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a complete ban, suppose the EU placed a tariff on the import of long -grain rice. Which of the following would be an outcome of this tariff?

• A) The price of long-grain rice in the EU would be higher with a tariff than if rice imports were completely banned
• B) The price of long-grain rice in the EU would be higher with a tariff than if rice imports were completely banned, but lower than with free trade
• C) The price of long-grain rice in the EU would be lower with a tariff than if rice imports were completely banned, but higher than with free trade
• D) The price of long-grain rice in the EU would be lower with a tariff than if rice imports were completely banned, but lower than with free trade

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