What Will Likely Be the Effect of an Import Quota

question 24

Multiple Choice

What will likely be the effect of an import quota or tariff on French wine that raises wine prices?

• A)It will hurt both domestic wine drinkers and domestic wine producers because of a reduction in competition.
• B)It will hurt both domestic wine drinkers and domestic wineries, but this will be more than offset by a reduction in driving fatalities.
• C)It will hurt domestic wine drinkers but help domestic wineries, which will gain from the higher prices.
• D)It will hurt domestic wineries, which will lose business as a result of the higher prices.

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Definitions:

Government Programs

are initiatives sponsored by the government aimed at achieving specific social, economic, or political objectives.

Ceteris Paribus

A phrase in Latin that translates to "everything else being constant," utilized in the field of economics to single out the impact of a specific variable while keeping the remainder of relevant elements unchanged.

Economic Analysis

The systematic study and examination of economic data or policies to understand or evaluate their impact on the economy.

Association

A group of people linked by a common purpose or interest, often formed to carry out a specific activity or to advocate for a cause.