Suppose that Peru increases tariffs on food products imported from Mexico. What is the desired effect of this tariff?
A) To increase the price of the imports and increase the amount of the imports
B) To increase the price of the imports and decrease the amount of the imports
C) To decrease the price of the imports and increase the amount of the imports
D) To decrease the price of the imports and decrease the amount of the imports
E) To halt all imports of food products from Mexico
Question 2
When the United States levies a tax on textiles from India, this tax is a type of:
A) export duty.
B) barter.
C) import.
D) tariff.
E) responsibility.
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