Question

National security demands have made it imperative for the US to close the toilet paper trade gap (just think what would happen in times of war if we couldn’t produce our own!). The government has decided to reduce our imports from 100 million units to 90 million units. As the supreme TP czar, which of the following policies should be chosen? Show and explain why. a. A production subsidy b. A consumption tax c. An import tariff

Answer 1

Answer:

National security demands have made it imperative for the US to close the toilet paper trade gap (just think what would happen in times of war if we couldn’t produce our own!). The government has decided to reduce our imports from 100 million units to 90 million units. As the supreme TP czar, which of the following policies should be chosen? Show and explain why. a. A production subsidy b. A consumption tax c. An import tariff.