If Economic Activity Increases, It Follows That Economic Welfare

question 158

Multiple Choice

If economic activity increases, it follows that economic welfare:

• A)increases as more goods and services become available.
• B)decreases as more resources are depleted.
• C)does not change since it does not depend on the level of economic activity.
• D)may increase, decrease, or remain unchanged depending on the nature of the increase in economic activity.

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Definitions:

Tariff

A tax on imports.

Subsidy

Financial support provided by the government to businesses, individuals, or other entities, aimed at promoting economic activities or ensuring the affordability of basic goods.

Tariffs

Taxes imposed by a government on imported goods in order to protect domestic industries or to generate revenue.

Quotas

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.