Which of the Following Is True of Import Substitution

question 115

Multiple Choice

Which of the following is true of import substitution?

• A)The government encourages domestic producers to make products which can compete in the international market.
• B)The government takes steps to liberate imports and lift restrictions.
• C)The government takes steps to promote exports and subsidizes export-oriented production.
• D)The government insulates domestic producers by imposing strict tariffs and quotas.
• E)The government focuses on service-oriented imports rather than primary imports.

---

Definitions:

State

A political entity that possesses sovereignty over a geographic area and the people within it, with a structured system of governance.

U.S. Tax System

A structured framework by which the federal, state, and local governments in the United States collect taxes from individuals and businesses based on income, sales, property, and other financial activities.

Primary Federal Tax System

The principal tax collection mechanism of the federal government, including income, payroll, and corporate taxes.

Primary State

The initial or foundational level of government authority in a country, often responsible for key areas such as law enforcement and taxation.