If Import Restrictions Prohibit Foreigners from Selling Various Goods in the U.S

question 173

Multiple Choice

If import restrictions prohibit foreigners from selling various goods in the U.S. market,

• A) the United States will be able to export more goods abroad.
• B) foreigners will have fewer U.S. dollars with which to buy goods from Americans.
• C) the United States will be able to produce a larger output than would otherwise be the case.
• D) the domestic producers in the protected industries will supply goods to U.S. consumers at lower prices than would otherwise be the case.

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Definitions:

Nonlabor Income

Income received from sources other than employment or the active exertion of effort, such as dividends, interest, or rental income.

Leisure

Time free from work or duties, which can be used for rest, recreation, or other personal activities.

Parallel Fashion

A manner in which activities or processes occur simultaneously or in a coordinated manner, often leading to increased efficiency or synchronization.

Slutsky Equation

A formula that decomposes the effect of a price change into a substitution effect and an income effect on the consumption of goods.