Suppose Canada would like to decrease the amount of lumber brought into their country from other countries. What trade policy should they enact to accomplish this goal?
A) Increase tariffs on lumber imports.
B) Decrease tariffs on lumber imports.
C) Enact embargo on lumber exports.
D) Increase quota on lumber imports.
E) Decrease quota on lumber exports.
Question 2
Suppose France increased the tariff on wine imported from Spain and, in retaliation, Spain decreased the quota on perfumes France can export to Spain. As a result, you would expect:
A) the amount of Spanish wine France imports to decrease and the number of French perfumes Spain imports to decrease.
B) French consumers to pay higher prices for Spanish wine and the number of French perfumes Spain imports to decrease.
C) the amount of Spanish wine France imports to increase and Spanish consumers to pay higher prices for French perfumes.
D) French consumers to pay lower prices for Spanish wine and Spanish consumers to pay lower prices for French perfumes.
E) the amount of Spanish wine France imports to decrease and the number of French perfumes Spain imports to increase.
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