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

question 17

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

Hunger

The physiological sensation or condition that signals the body's need for food intake.

Loss of Appetite

A decrease in the desire to eat, which can be a symptom of numerous conditions or emotional states.

Regaining Weight

The process of putting weight back on after having lost it, often a concern in the context of dieting and health.

Dieting

The practice of regulating or restricting food intake with the purpose of losing, gaining, or maintaining weight.