Which device has the European Union used to equalize farm-product import prices with politically determined European Union prices, regardless of shifts in world prices?
A) variable levies
B) import quotas
C) import subsidies
D) domestic content regulations

Question

Quizplus · Accepted Answer

Variable levies are used by the European Union to equalize farm-product import prices with politically determined European Union prices, regardless of shifts in world prices. This is done by imposing a tariff on imported products based on the difference between the world price and the European Union price. Import quotas restrict the amount of a product that can be imported, while import subsidies provide financial assistance to domestic producers. Domestic content regulations require a certain percentage of a product's components to be produced domestically.

Which Device Has the European Union Used to Equalize Farm-Product