Under the EU's Common Agricultural Policy, a variable import levy equals the ?
Correct answer: A. amount the which the EU's support price exceeds the world price
- A. amount the which the EU's support price exceeds the world price
- B. amount by which the world price exceeds the EU's support price
- C. support price of the EU
- D. world price
Explanation
The variable import levy closes the gap between the EU support price and the lower world price, so it equals the EU support price minus the world price. This protects EU producers from cheaper foreign imports.
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