Suppose a Country Increases Trade Restrictions

question 30

Multiple Choice

Suppose a country increases trade restrictions.This country would be pursing an

• A)inward policy,which most economists believe has beneficial effects on the economy.
• B)inward policy,which most economists believe has adverse effects on the economy.
• C)outward policy,which most economists believe has beneficial effects on the economy.
• D)outward policy,which most economists believe has adverse effects on the economy.

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Definitions:

Consumer Surplus

The divergence between what consumers are willing to pay for a product or service and the actual payment they make.

Supply Curve

A visual display mapping out the link between how much of a good is supplied and its price.

Efficiency

The extent to which resources are used in the most effective way to produce goods and services, minimizing waste.

Equality

Equality refers to the state of being equal, especially in status, rights, and opportunities.