Which of the following is NOT a potential problem of using export controls?
A)There is an incentive for other countries to develop production of their own.
B)Domestic producers may have less incentive to increase output.
C)Prices go up in the country imposing the controls.
D)There is more incentive for smuggling.

Question

Quizplus · Accepted Answer

Export controls can lead to higher prices in the countries targeted by the controls, not in the country imposing them. The other options (A, B, D) are potential problems associated with export controls, such as incentivizing production in other countries, reducing domestic producers' incentive to increase output, and increasing the incentive for smuggling.

Which of the Following Is NOT a Potential Problem of Using