Regarding economic sanctions, an export embargo causes larger consumer surplus losses in the targeted country when the country has:

Trade Regulations And Industrial Policies MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Trade Regulations And Industrial Policies

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Subject
Trade Regulations And Industrial Policieseconomics-mcqs › trade-regulations-and-industrial-policies
Published
27 May 2019
Last updated
28 May 2026

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Explanation

An export embargo results in greater consumer surplus losses when the target country initially depends less on foreign-produced goods. This is because lower dependence means the embargo restricts fewer alternatives, intensifying the impact on consumers. In contrast, factors like demand elasticity, alternative supply availability, or supply elasticity influence the effect differently.

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