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Scenario: Montesia Is Predominantly a Producer and Exporter of Manufactured

Question 146

Multiple Choice

Scenario: Montesia is predominantly a producer and exporter of manufactured goods. However, it imports several agricultural products.
-Refer to the scenario above.Recently,the government of Montesia has imposed a tariff on the import of some cash crops.Which of the following is likely to happen in this case?


A) The government's revenue is expected to fall.
B) The volume of imports is likely to increase.
C) The domestic consumers of cash crops will be better off.
D) The domestic producers of cash crops will be better off.

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