Suppose a National Government Chooses to Impose Barriers to Trade

question 74

Multiple Choice

Suppose a national government chooses to impose barriers to trade in an effort to promote a more diversified economy. This objective would be particularly important to, for example, an economy largely dependent on one or two agricultural products because

• A)it will increase net exports for the economy.
• B)it will certainly maximize national income and raise average living standards.
• C)it will allow firms in the economy to exploit economies of scale in newly developed industries.
• D)any volatility in the world prices of those commodities leads to great volatility in national income.
• E)that country's terms of trade will continue to deteriorate over time if it continues to specialize.

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Definitions:

Eye-Movement Desensitization

a component of EMDR therapy focusing on alleviating the distress associated with traumatic memories through guided rapid, rhythmic eye movements.

Post-Traumatic Stress Disorder

A psychological disorder caused by exposure to or direct experience of a horrifying incident, marked by recurrent flashbacks, distressing dreams, and intense fear.

Reprocessing

The act of revisiting and analyzing previous experiences with the aim of altering one's response or perspective towards them.

Eye Therapy

A type of physical therapy aimed at improving visual function and health, often involving exercises designed to strengthen eye muscles and improve vision.