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US Citizens Pay $5 Billion More Annually for Shoes and Japanese

Question 61

Multiple Choice

U.S citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more for rice than the actual cost of the products because


A) both countries have suffered major financial crises due to a severe trade imbalance.
B) both these countries have imposed tariffs on these goods to protect their domestic markets.
C) both countries have imposed limits on the quantity of these goods leaving the domestic market.
D) both products are considered essentials and as a result are more heavily taxed.
E) previously these products were purchased at a lower price from nations that currently are under governmental sanctions.

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