A supporter of free trade would support all of these actions EXCEPT A) reducing quotas. B) reducing tariffs. C) imposing subsidies. D) eliminating embargoes
I choose letter c. imposing subsidies. When you impose subsidies on exports, it is a
tax that is shifted to the consumer.
This means that the product’s price will be higher for the consumer and
the net price will lower for the producer.
The other three choices are more favorable to free trade.