A Strategy of Restricting Imports and Substituting Domestic Production of Those

question 28

Multiple Choice

A strategy of restricting imports and substituting domestic production of those goods is called

• A) trade restraint strategy.
• B) import substitution strategy.
• C) trade blockage strategy.
• D) export substitution strategy.

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Definitions:

Heating Substitutes

Alternative heating sources that can replace the primary heating method, including electric heaters, solar heating, and geothermal heat pumps.

Price-Discriminating

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on various criteria.

Allocative Inefficiency

Allocative Inefficiency occurs when the allocation of resources does not correspond to consumer preferences, resulting in misallocation of resources and potential welfare losses.

Pure Monopolist

A market situation in which a single company or entity exclusively controls the supply of a particular good or service, with no close substitutes.