Other Things Being Equal, If There Is a Price Increase

question 144

True/False

Other things being equal, if there is a price increase of a good measured on the vertical axis, the budget constraint shifts outward.

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Definitions:

Protectionism

Economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) fair competition between imports and goods and service produced domestically.

World Trade

The exchange of goods and services across international borders or territories.

Tariffs

Taxes or duties to be paid on a particular class of imports or exports.

Quotas

Limits set on the quantity or value of goods that can be imported or exported over a specified period.