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:

Operating Income

The profit earned from a firm's normal core business operations, excluding deductions of interest and taxes.

Fixed Costs

Expenses that do not change in proportion to the volume of goods or services a company produces.

Capacity

The maximum output or producing ability of a plant, machine, or company under normal or specific conditions.

Operating Profit

The earnings before interest and taxes (EBIT) generated from a company's core business operations.