CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

An import quota or tariff on Chinese crayfish tails that raises the price of crayfish tails is likely to ______
A. hurt domestic consumers of crayfish and help domestic crayfish farmers, who gain from the higher prices.
B. hurt domestic crayfish farmers, who will lose business because of higher prices.
C. hurt both domestic consumers of crayfish and crayfish farmers by increasing the level of competition in the crayfish industry.
Explanation: Domestic crayfish producers will gain from restricted competition and higher prices. Domestic consumers will lose for the same reasons.

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