Trade Restrictions

question 90

Multiple Choice

Trade restrictions

• A)Reduce the gains from trade for the country as a whole.
• B)Increase the gains from trade for poor countries.
• C)Reduce the number of hours employees must work.
• D)Increase the standard of living for the country as a whole.

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Definitions:

Complements

Complements are goods or services that are used together, so that the consumption or use of one increases the demand for the other.

Durable Good

A type of good that does not quickly wear out and is capable of being used for a period of time, often years, before needing replacement.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Substitute Good

A product or service that consumers see as a viable alternative to another product, where an increase in the price of one leads to an increase in demand for the other.