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

question 130

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 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 EU would gain tariff revenue.
• B) Deadweight loss would decrease.
• C) European rice producers would decrease production.
• D) The price of long-grain rice in the EU would not change.

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Definitions:

Outsourcing Restrictions

Policies or practices aimed at limiting the transfer of jobs or tasks to external contractors or locations, often to protect domestic employment.

Union Jobs

Positions of employment that are represented by a labor union, offering benefits such as collective bargaining rights and union protection.

Unionized Employers

Employers that have their workforce represented by a union for the purposes of collective bargaining and labor relations.

Better Benefits

Enhanced or improved employment benefits, including health insurance, retirement plans, or vacation time, often negotiated for by employees or unions.