An Example of Policies Designed to Protect and Encourage New

question 15

Multiple Choice

An example of policies designed to protect and encourage new industries serving the domestic market would be:

• A)taxing exports of manufactured goods.
• B)subsidizing imports to the domestic market.
• C)imposing import tariffs or otherwise restricting imports.
• D)removing all trade restrictions and price supports.

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Definitions:

Average Cost

The total cost divided by the quantity produced, calculating the cost on a per unit basis.

Total Output

The total quantity of goods or services produced by a firm or economy.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that vary directly with the level of production or volume of output.