If a tariff on beef were implemented,which of the following would rise?
A)exports and net exports
B)exports but not net exports
C)net exports but not exports
D)neither exports nor net exports

Question

Quizplus · Accepted Answer

A tariff on beef would make beef more expensive for domestic consumers, causing them to reduce their consumption of beef, and thus reducing the demand for beef. This reduction in demand would likely lead to a decrease in the quantity of beef that is exported, and thus a decrease in exports. However, since the tariff would make it more expensive for foreign consumers to purchase beef from the US, it would likely also reduce the quantity of beef that is imported, leading to a decrease in net exports. Therefore, neither exports nor net exports would rise.

If a Tariff on Beef Were Implemented,which of the Following